Nigeria’s public debt profile has expanded significantly under the administration of President Bola Tinubu, with a staggering N57.3 trillion added within just 18 months, according to fresh data from the Debt Management Office (DMO). This 65.6% spike has pushed the country’s total debt from N87.38tn as of June 2023 to N144.67tn by the end of December 2024.
The Nigeria debt sharp increase has been attributed to a combination of aggressive local borrowing, exchange rate depreciation, and conversion of central bank overdrafts into tradable bonds.
At the heart of the expansion lies a marked shift in the debt structure. External debt, previously constituting about 38% of Nigeria’s debt portfolio, now accounts for nearly 49%, climbing from N33.25tn to N70.29tn. Simultaneously, domestic debt grew from N54.13tn to N74.38tn. In dollar terms, however, the total public debt decreased from $113.42bn to $94.23bn, reflecting the impact of naira depreciation, not a cutback in borrowing.
The naira’s plunge—from N770.38/$1 in June 2023 to N1,535/$1 by December 2024—essentially doubled the naira valuation of foreign debt, even with minimal increases in the dollar amounts.
The Federal Government is responsible for over 90% of the total debt, with obligations rising from N78.21tn to N133.33tn. Its domestic debt alone ballooned by N22.1tn, driven largely by the conversion of the N22.7tn in Ways and Means Advances from the Central Bank of Nigeria into FGN bonds—an act approved in May 2023.
FGN Bonds dominate the domestic debt stock, totaling N55.44tn by the end of 2024, while Treasury Bills surged to N12.35tn, nearly tripling in value in just 18 months. Other instruments such as Sukuk, Promissory Notes, and Savings Bonds also saw sharp increases.
On the external front, Nigeria’s foreign debt increased modestly in dollar terms from $43.16bn to $45.78bn. Multilateral lenders like the World Bank and the African Development Bank were the primary sources of new loans. The World Bank’s IDA loans rose to $16.56bn, while borrowings from the AfDB climbed to $2.10bn.
Eurobond issuance also rose significantly—from $15.62bn to $17.32bn—as the government turned to commercial markets to plug fiscal gaps. Meanwhile, Nigeria repaid its $3.4bn emergency loan from the IMF, disbursed during the COVID-19 pandemic, by April 2025.
The growing debt burden has translated into mounting debt servicing costs, now consuming a substantial chunk of Nigeria’s revenue. Despite reforms such as fuel subsidy removal, exchange rate unification, and efforts to improve tax collection, fiscal consolidation remains elusive.
The use of short-term instruments like Treasury Bills—now making up 17.5% of the domestic debt compared to 9.8% in mid-2023—signals government liquidity pressure and the need for rapid financing.
In a related development, the Federal Government is seeking an additional $500 million loan from the World Bank to fund the Sustainable Agricultural Value-Chains for Growth project. The initiative aims to boost rice, cocoa, cashew, and cassava production, while addressing infrastructural, market, and policy challenges in agriculture.
According to the World Bank, agriculture contributes 25% to Nigeria’s GDP and 40% of non-oil exports, yet suffers from low productivity and inadequate infrastructure. The proposed loan is expected to be approved by December 2025, with the Federal Ministries of Finance and Agriculture, along with selected state governments, serving as implementers.