Nigeria's Debt Service Ratio Drops to 68% by 2025

Vice President Kashim Shettima reported a sharp decline in Nigeria's debt service-to-revenue ratio from 120% in December 2022 to 68% by 2025, during a speech at the 2026 Tax Conference in Abuja. This improvement is linked to tax reforms initiated by President Bola Tinubu's administration, coordinated by Finance Minister Taiwo Oyeleke.

The reforms, which took effect on January 1, 2026, represent Nigeria's first comprehensive tax overhaul in 35 years, designed to enhance long-term economic growth and broaden the tax base. Shettima emphasized that the reforms aim to build a stronger fiscal foundation without increasing taxation.

He defended the reforms against critics, asserting that individuals earning below N1 million annually would remain tax-exempt. The administration's goal is to shift Nigeria from a borrowing economy to one that thrives on investment, with a target of growing the economy to $1 trillion by 2030.