Nigeria’s Public Debt Soars to N149.39 Trillion: A Looming Fiscal Crisis?
Nigeria’s public debt has reached a staggering N149.39 trillion as of March 31, 2025, marking a 22.8% year-on-year increase. This upward trend raises concerns about the country’s fiscal sustainability, particularly with debt servicing consuming a significant share of the national budget.
Nigeria’s total public debt rose to N149.39 trillion, reflecting both fresh borrowings and the impact of a depreciating exchange rate on external debt obligations. The external debt component stood at N70.63 trillion, a significant jump from N56.02 trillion in the same period in 2024. This represents a year-on-year increase of N14.61 trillion or 26.1%. The domestic component of Nigeria’s debt also maintained an upward trend, reaching N78.76 trillion at the end of March 2025.
The rising share of external debt in naira terms highlights the currency risk Nigeria faces with continued reliance on foreign borrowing. The consistent increase in domestic debt signals the government’s efforts to raise funds from the local capital market, despite concerns about high debt servicing costs and crowding out of private investment.
Nigeria’s public debt trajectory continues to raise questions about fiscal sustainability. With the total debt stock nearing the N150 trillion mark, concerns persist over the rising cost of debt servicing, which now consumes a significant share of the national budget. The government must implement prudent fiscal policies, prioritize debt management, and promote economic growth to mitigate the risks associated with the rising public debt.
To address these challenges, the government should focus on stabilizing the currency, improving debt management, and promoting economic growth. By investing in critical sectors and promoting economic growth, the government can increase revenue and reduce dependence on borrowing. Ultimately, a comprehensive approach to managing Nigeria’s public debt is essential to ensuring the country’s long-term economic stability and prosperity.
