- ‘FG accounts for 92.14% of total debt stock, states, 7.86%’
Nigeria’s total public debt has risen sharply by N71.9trn within the first two and a half years of President Bola Tinubu’s administration, raising fresh concerns among economic analysts over the country’s fiscal sustainability and rising debt servicing burden.
Data obtained by THE POINT from the Debt Management Office showed that the nation’s total public debt increased from N87.38trn as of June 30, 2023, shortly after President Bola Ahmed Tinubu assumed office, to N159.28trn by December 31, 2025.
The increase represents an 82.28 per cent rise within 30 months.
THE POINT’s analysis of the debt profile showed that the Federal Government accounted for the bulk of the liabilities. Of the N159.28trn total debt stock, the Federal Government owed N146.76trn, representing 92.14 per cent, while the 36 states and the Federal Capital Territory accounted for N12.52trn or 7.86 per cent.
A breakdown of the debt indicated that the Federal Government’s domestic debt stood at N80.49trn, accounting for 50.53 per cent of the total public debt. The domestic debt owed by states and the FCT stood at N3.08trn.
On the external side, the Federal Government’s foreign debt rose to N66.27trn, while states and the FCT owed N8.16trn.
Further analysis showed that the Federal Government’s domestic debt increased by N17.77trn within the review period, rising from N62.72trn in June 2023 to N80.49trn by the end of 2025.
The external debt component recorded an even sharper rise. The Federal Government’s foreign debt climbed from N29.9trn in June 2023 to N66.27trn in December 2025, representing an increase of N36.37trn or 121.64 per cent.
While some analysts linked the increase partly to the devaluation of the naira, which inflated the naira value of foreign loans, they noted that the sharp rise in domestic borrowing also contributed significantly to the expansion in total debt.
Economic analysts warned that the pace of debt accumulation was becoming a major macroeconomic concern, especially given the country’s weak revenue base and high debt servicing obligations.
The Registrar of the Institute of Finance and Control of Nigeria, Godwin Eohoi said although a large economy could sustain significant borrowing, Nigeria’s major challenge remained its debt-service-to-revenue ratio.
According to him, spending more than 70 per cent of government revenue on debt servicing puts serious pressure on fiscal sustainability.
He said, “Borrowing should be tied strictly to projects that can stimulate growth, exports, and productivity.
“What these numbers reveal is not just a debt problem, but a governance and productivity crisis.
“Nations can borrow responsibly if the funds are invested in sectors that expand economic capacity and improve citizens’ welfare. The concern in Nigeria is that despite the rapid rise in public debt over the last decade, infrastructure deficits, poverty, unemployment, and insecurity have continued to worsen.”
A Chartered Accountant, Afeez Gbolahan, also expressed concern over the rising debt stock, noting that although naira devaluation contributed to the increase, the country’s underlying fiscal vulnerabilities remained severe.
He said debt servicing continued to consume a disproportionately high share of government revenue, limiting funds available for infrastructure and development.
“The bigger risk is not just the size of the debt, but whether the economy can generate enough growth and foreign exchange earnings to sustain repayments without crowding out critical investments,” he said.
According to him, Nigeria requires stronger export earnings, improved oil production, better tax administration, and disciplined public spending to prevent rising debt from weakening investor confidence and constraining development financing.
SOURCE: thepointng.com