Nigeria's Rising Debt Worries Persist Despite Reforms

Nigeria's rising debt levels continue to raise concerns despite recent fiscal reforms. Murtala Sabo Sagagi, a member of the Central Bank of Nigeria's Monetary Policy Committee, expressed worry over the country's escalating debt profile.

Despite measures like fuel subsidy removal and FX reforms, government spending has been deemed reckless, leading to a significant increase in public debt. The Debt Management Office reported a staggering rise in Nigeria's total public debt within three months.

Sagagi highlighted the need for fiscal discipline as the government's spending habits remain unchecked. However, he projected optimism regarding the naira's trajectory, foreseeing appreciation by December 2025 due to improved balance of payments and increased capital inflows.