Nigeria's Debt Hits ₦49.8 Trillion Amid Naira Devaluation

Nigeria's total public debt increased to ₦49.8 trillion in March 2023, with projections suggesting it could reach ₦159.2 trillion by December 2025. This surge has sparked fears of a potential debt crisis.

Economists attribute the rise to the sharp devaluation of the naira and increased borrowing costs, which have inflated the debt profile significantly. The naira weakened from around ₦460 to nearly ₦1,500, causing foreign currency obligations to balloon.

Analysts estimate that the debt stock could reach nearly ₦43 trillion due to exchange rate revaluation. Despite the alarming figures, economists emphasize that the debt service-to-revenue ratio remains among the highest globally, with a substantial portion of federal revenue consumed by debt servicing.

President Bola Tinubu acknowledged that a significant part of government revenue is allocated to debt service, limiting fiscal space for infrastructure and social investments. The current administration faces intensified fiscal pressure, with critics arguing that it cannot distance itself from the consequences of naira devaluation.