Nigeria's Debt Management Office Projects Debt Ratio Drop

The Debt Management Office (DMO) released its 2024 Debt Sustainability Analysis on November 9, 2026, indicating that Nigeria's public debt could decrease from 53.7% of gross domestic product (GDP) in 2024 to 27.3% by 2030. However, the proportion of Federal Government revenue needed for debt servicing is expected to rise from 60.6% to 71.7% during the same period.

This scenario suggests that while Nigeria may show an improvement in its debt sustainability ratio, it will face increased challenges in funding public services. By 2030, approximately 72 kobo of every naira in federal revenue will be allocated to debt servicing, leaving only about 28 kobo for other expenditures.

The DMO's analysis warns that the debt-service-to-revenue ratio will exceed the 50% benchmark, indicating a risk in the country’s ability to generate revenue against its debt obligations. As of June 2026, Nigeria's total public debt was approximately ₦166.79 trillion, with domestic obligations at ₦91.59 trillion and external debt at ₦75.20 trillion.