Nigeria's Debt Hits N159.28 Trillion Amid Fiscal Crisis

As of December 31, 2025, Nigeria's total public debt has risen to N159.28 trillion, reflecting an increase of approximately N70 trillion compared to mid-2023. The federal government, under President Bola Ahmed Tinubu, has faced a growing fiscal crisis, with debt servicing costs consuming 100% of federal retained revenue.

In 2023, federal retained revenue was around N10 trillion to N11 trillion, while debt servicing costs were estimated at N8 trillion to N9 trillion, indicating a debt servicing to revenue ratio of 80-90%. The situation is projected to worsen in 2024, with revenue modestly rising to N12 trillion to N13 trillion, but debt servicing costs climbing to N13 trillion to N14 trillion, pushing the ratio to around 100%.

The fiscal challenges are compounded by a reliance on borrowing and a depreciating naira, which has led to significant budget shortfalls, with federal revenue standing at N13.67 trillion in the first half of 2025, representing a 42.7% shortfall against targets.