Nigeria’s total public debt has climbed to N149.39 trillion by the end of the first quarter of 2025, sparking concern among economists and financial experts over its growing size and lack of visible economic benefit.
According to data from the Debt Management Office (DMO), the debt stock rose by N27.72 trillion, or 22.8 percent, compared to the same period in 2024. The figures represent a further increase of N4.72 trillion from the total as of December 2024, with analysts warning that the borrowing trend continues without tangible improvements to infrastructure or citizens’ welfare.
The breakdown of the debt shows that external borrowing reached N70.63 trillion ($45.98 billion), marking a 26.1 percent increase from N56.02 trillion ($42.12 billion) recorded in the same quarter last year. On the domestic front, debt stock rose by 20 percent year-on-year, hitting N78.76 trillion ($51.26 billion) as of March 2025. The Federal Government holds the bulk of this domestic debt at N74.89 trillion, while state governments and the Federal Capital Territory are responsible for N3.87 trillion.
Beyond the absolute figures, experts are troubled by Nigeria’s worsening debt-to-revenue ratio. From 2022 to 2024, the country spent N25.12 trillion on debt servicing but earned only N20.6 trillion in revenue. This N4.5 trillion shortfall highlights what many view as a fundamentally unsustainable fiscal path. The concern is not just the rising debt, but the fact that debt servicing now exceeds the government’s total income, leaving little room for investment in critical sectors.
Commenting on the issue, Mazi Okechukwu Unegbu, a former president of the Chartered Institute of Bankers of Nigeria, criticized the government’s borrowing pattern, saying there has been no improvement in infrastructure or the general economy. “We have borrowed so much, but the country’s infrastructure, such as roads and economic realities, has remained unchanged,” he said. He urged the government to prioritize reducing domestic debt to encourage local development and economic stability.
Gbolade Idakolo, CEO of SD & D Capital Management, also raised alarm, stating that borrowing continues to fund political rather than productive projects. He pointed out that the Buhari administration left behind a growing debt burden now worsened under the current government. Idakolo emphasized the need for loans to be tied to revenue-generating infrastructure. “If the government must increase borrowing, then a feasible fiscal plan must be in place to realistically increase revenue generation,” he said.
Professor Godwin Oyedokun of Lead City University described the debt escalation as deeply troubling, warning that the country is sliding into a debt trap. He noted that while borrowing can be a useful tool for development, it must be accompanied by clear returns. “Roads, electricity, water infrastructure, health, and education should be the visible dividends of debt-funded projects,” he explained. Instead, Nigerians continue to face poor roads, frequent power outages, rising inflation, and worsening poverty.
The consensus among experts is that Nigeria urgently needs to adopt a new fiscal direction. Recommendations include tying every loan to a measurable economic outcome, prioritizing projects with strong multiplier effects, and expanding the revenue base beyond oil through taxation and better management of state assets. Without these changes, they warn, the country risks eroding its ability to fund essential services, respond to economic shocks, and secure its long-term financial future.
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