Nigeria's Debt Surges to N41 Trillion Despite Subsidy Removal and Forex Reforms

Concerns arise over Nigeria's deteriorating debt profile despite the removal of fuel subsidies and forex reforms, as highlighted by Murtala Sabo Sagagi, a member of the Central Bank of Nigeria's Monetary Policy Committee (MPC). Sagagi expressed worry over the country's escalating public debt, which surged from N38 trillion in December 2024 to N41 trillion by March 2025.

The exchange rate is projected to hit N1 by December 2025, adding to economic pressures. Another MPC member, Lamido Abubakar Yuguda, emphasized the necessity for continued monetary tightening.

The recent data from the Debt Management Office (DMO) underscores the urgent need for fiscal stability measures to address Nigeria's growing debt burden.