Sanusi Warns of Nigeria's Debt Crisis Amid Heavy Borrowing

Emir Muhammadu Sanusi II, a former Central Bank governor, has issued a stark warning regarding Nigeria's escalating debt crisis during his 2026 annual lecture in Lagos. He emphasized that the country can no longer afford to ignore its fiscal indiscipline, as public debt has reached N159.28 trillion (approximately $111 billion) by the end of 2025.

Sanusi criticized the government's heavy borrowing, including a recent approval by the National Assembly for a $6 billion external financing package requested by President Bola Ahmed Tinubu. This package includes $5 billion from Abu Dhabi Bank and $1 billion from Citibank for infrastructure projects.

He stressed that the issue is not merely about borrowing but rather the lack of a convincing revenue strategy and the need for stricter project discipline. The 2026 budget allocates N15.8 trillion for debt servicing, raising concerns that excessive debt will hinder public investment and exacerbate poverty, as 63% of Nigerians are already affected by multidimensional poverty.