Nigeria's Debt Surges Under Tinubu's Administration

As of June 2023, Nigeria's public debt reached N87.38 trillion, reflecting a significant increase of N65.9 trillion during Bola Tinubu's administration within its first two years. This accumulation surpasses the total debt accrued from 1960 to 2015, which was N12.06 trillion.

The report by Polic Brief Alliance and Economic Research Ethics Ltd highlights the alarming debt service-to-revenue ratio, projected at 116.8% for 2024, indicating that the government spent N696.27 billion on debt servicing against a retained revenue of N483.47 billion. The fiscal situation is exacerbated by a projected N25.3 trillion deficit in the 2026 budget, which exceeds the three percent limit set by the Fiscal Responsibility Act.

The report urges the Nigerian government to focus on revenue generation and tax reforms to stabilize the economy, as the current tax-to-GDP ratio remains low at 8.2%, compared to the Sub-Saharan African average of 15%.