Nigeria’s Soaring Debt Could Reach N160 Trillion by Year End

Nigeria’s Soaring Debt Could Reach N160 Trillion by Year End

Nigeria’s public debt is on a steep upward trajectory and may hit a staggering N160 trillion by December 2025, according to a new economic analysis report. The alarming projection comes amid rising domestic and foreign borrowings, driven by persistent budget deficits and a growing reliance on loans to finance infrastructure and social projects.

Analysts say that between the federal and state governments, debt accumulation has become unsustainable. Recent data from the Debt Management Office (DMO) pegged Nigeria’s total public debt at over N121 trillion as of March 2025. However, with new loans being negotiated and additional Eurobond issuances expected, the figure could spike drastically within months.

Experts warn that if this trend continues without robust economic reforms and improved revenue generation, Nigeria risks facing a debt crisis. The nation’s debt servicing bill already gulps a huge percentage of government revenue, leaving little room for investment in education, health, and security.

Calls are growing louder for the Tinubu-led administration to prioritize fiscal discipline, block revenue leakages, and diversify the economy to reduce over-reliance on borrowing. Without urgent action, many fear the burden of Nigeria’s debt will fall heavily on future generations.

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