Nigeria's Debt Surges N65.9 Trillion in Two Years

A report from Alliance Econom Research Ethic Ltd, a Nigerian policy think tank, reveals that Nigeria's public debt increased by N65.9 trillion during President Bola Tinubu's administration within its first two years, significantly exceeding the N12.06 trillion accumulated from independence in 1960 to 2015. The report indicates that Nigeria's total public debt reached N87.38 trillion by June 2023, marking a 620% increase since the administration of former President Muhammadu Buhari.

The report also highlights that Nigeria's debt service-to-revenue ratio rose to 116.8% in 2024, indicating that the government's revenue is insufficient to cover debt obligations. Despite a debt-to-GDP ratio of 35.5%, which appears moderate compared to other countries, the report warns of fiscal unsustainability.

The findings emphasize the urgent need for fiscal reform as Nigeria's debt crisis evolves, with rising debt service obligations posing a significant threat to the country's economic stability.