Nigeria’s public debt has surged to an unprecedented N149.39 trillion as of the first quarter of 2025, sparking widespread concern among financial experts, economists, and citizens who lament the lack of tangible improvements in infrastructure or economic well-being despite the massive borrowings.
According to fresh data released by the Debt Management Office (DMO), Nigeria’s total debt stock rose by N27.72 trillion, representing a 22.8% increase compared to N121.67 trillion recorded in Q1 2024. The new figure also marks a 3.3% rise from the N144.67 trillion recorded at the end of 2024.
The data shows that external debt rose significantly by N14.61 trillion (26.1%) to hit N70.63 trillion ($45.98 billion) in March 2025, compared to N56.02 trillion ($42.12 billion) in the same period last year. On a quarter-to-quarter basis, the external debt grew by N344 billion from the N70.29 trillion posted in December 2024.
Similarly, domestic debt increased by N13.11 trillion or 20% year-on-year, rising to N78.76 trillion ($51.26 billion) from N65.65 trillion ($49.35 billion). The Federal Government is responsible for N74.89 trillion, while state governments and the FCT account for N3.87 trillion.
Despite this staggering debt accumulation, economic indicators suggest that citizens are yet to see real dividends in terms of improved infrastructure or living standards.
A particularly troubling aspect of Nigeria’s fiscal reality is the unsustainable debt-to-revenue ratio. Between 2022 and 2024, the government spent N25.12 trillion on debt servicing—N4.5 trillion more than the total revenue of N20.6 trillion earned in that period.
This trend has raised alarms over Nigeria’s ability to fund development or respond to economic shocks.
Experts React to Nigeria’s Rising Debt Burden
In separate interviews with Daily Post, economic stakeholders expressed concern over the nation’s borrowing trend.
Mazi Okechukwu Unegbu, ex-president of CIBN:
He criticised the rising loan profile, noting the absence of visible improvements.
“We’ve borrowed so much, but the country’s roads, electricity, and public services remain in deplorable condition,” Unegbu said. “It is clear there is no real impact on the economy. This is troubling.”
He urged the government to cut back on domestic borrowing and instead focus on productive use of existing funds.
Gbolade Idakolo, CEO of SD&D Capital:
Idakolo stressed that many borrowings are channelled toward political projects rather than developmental initiatives.
“There must be a forensic analysis of what impact these loans are having on infrastructure,” he said. “If loans are not revenue-yielding, we are only compounding the problem.”
He advised the Federal Government to adopt a fiscal discipline framework tied to revenue-generating infrastructure, while warning that rising debt could further widen the deficit and strain Nigeria’s fragile economy.
Prof. Godwin Oyedokun, Lead City University:
Oyedokun described the development as sobering and called for a complete overhaul of how Nigeria approaches debt.
“Borrowing isn’t inherently bad, but debt without measurable impact is toxic,” he explained. “Power, water, healthcare, education, and roads should be the outcome of debt-funded projects—not rising poverty and inflation.”
He recommended a two-pronged strategy: targeting borrowing only for value-driven projects and improving revenue generation through tax reform, fiscal discipline, and better management of state assets.
President Bola Tinubu’s administration, which inherited a ballooning debt from the Buhari era, has taken steps to improve government revenue through new tax regimes and monetary tightening policies. However, experts argue that the impact of these policies has yet to close the revenue-debt gap.
The debt-to-GDP ratio, estimated at 54% in 2024, is expected to rise in 2025—further heightening fears of fiscal insolvency.
Nigeria’s N149.39 trillion debt profile paints a worrying picture of a nation borrowing heavily without a commensurate boost in development or economic transformation. As pressure mounts on the Tinubu administration, stakeholders insist the time for rhetoric is over. There must be accountability, transparency, and result-driven use of public debt if Nigeria is to escape its deepening debt trap and revive public trust.