Nigeria's Debt Crisis Nears Unsustainable Levels, Warn Capital Market Experts

Nigerian capital market experts caution that the country's public debt is nearing unsustainable levels, with concerns over weak revenue, escalating debt servicing costs, and persistent structural inefficiencies. Despite official data indicating the debt-to-GDP ratio is within acceptable global thresholds, analysts highlight the fragility of Nigeria's debt trajectory.

Experts emphasize the need for a medium-term debt strategy to lengthen debt maturity, reduce interest rate exposure, and manage refinancing risks. They advocate for a shift towards project-specific borrowing with measurable economic returns and a balanced domestic-external debt mix to enhance financial resilience.