Nigeria's Debt Reaches $145 Billion Amid Concerns

Nigeria's external debt stock reached $145.02 billion at the end of 2025, a 6.6 percent increase from the previous year, according to the World Bank's International Debt Report 2026. This marks a significant rise from $83.21 billion in 2015, totaling an increase of about $61.8 billion over ten years.

Former President Olusegun Obasanjo expressed concerns about excessive borrowing, questioning how Nigeria fell into this situation. In response, President Bola Tinubu defended the federal government's request for $7.707 billion to help finance the 2026 budget deficit, emphasizing that new borrowing would focus on productive capital investments.

Despite the government's stance, public debt has become a burden, with the Debt Management Office reporting a debt stock of approximately N167 trillion by mid-2026. Interest payments reached N7.7 trillion in the first half of 2026, surpassing federal revenues, raising alarms about the sustainability of Nigeria's fiscal health.