The National Orientation Agency (NOA) has said that Nigeria’s debt profile “significantly decreased” since President Bola Tinubu took office in 2023, challenging widespread misconceptions and citing an explainer from 24 October cites data from the Debt Management Office (DMO), the Central Bank of Nigeria (CBN), and other reputable sources.
As of June 2023, Nigeria’s total public debt was $113.42 billion, with a debt-to-GDP ratio below 40 percent, considered sustainable by the IMF and World Bank. The NOA projects that by December 2024, this debt could decline to approximately $94.22 billion, a reduction of over $19 billion in 18 months.
However, the DMO reported on 12 October that Nigeria’s public debt reached N152.39 trillion as of 30 June, reflecting a N3 trillion increase since March.
“The reduction in Nigeria’s debt shows that the federal government is actively managing its borrowings and repayments,” the NOA said.
“Instead of accumulating more debt, Nigeria has been making down payments of some of its loans and avoiding unnecessary new borrowings. This is a positive sign of fiscal responsibility.”
Debt servicing issues prior to Tinubu’s administration.
Before Tinubu took office, debt servicing consumed nearly all federal revenue. In early 2023, about 97 percent of federal revenue was allocated to debt servicing, restricting funds for essential services. The NOA highlighted the government’s commitment to its debt obligations, noting the repayment of a $3.26 billion IMF loan within two years and around $7 billion spent on external debt servicing in the first 18 months of the current administration.
“By the end of 2024, this ratio had improved to 68 percent, and it had reduced to less than 50 percent by the second quarter of 2025,” NOA said.
“While still high, this is a significant improvement, showing better fiscal management and increased government revenue.”
Economic recovery and growth signs
The federal government, the NOA said, has demonstrated a strong commitment to meeting its debt obligations, exemplified by repaying a $3.26 billion IMF loan within two years and spending around $7 billion on external debt servicing in the first 18 months of the Tinubu administration.
The agency said that despite manageable debt, Nigeria faces economic difficulties due to over-reliance on volatile oil revenue, but the government is working to boost non-oil revenue through improved tax collection and reduced leakages.
Debt Service Management of Nigeria (DSMN) report
According to the Debt Service Management of Nigeria (DSMN) report, Nigeria spent 4.1 percent of its Gross Domestic Product on debt servicing in 2024, according to the latest Country Focus Report by the African Development Bank.
The figure represents an increase from 3.7 percent recorded in 2023 and reflects the rising cost of borrowing amid tightening global financial conditions and high domestic interest rates.
According to the report, the increase in debt service obligations was driven by higher interest payments on government securities and fresh borrowings to finance the budget deficit.
It added that the increased expenditure was largely driven by debt servicing costs, which consumed a larger share of public finances despite recent fiscal reforms. Public debt rose sharply to 52.3 percent of GDP in 2024, up from 41.5 percent in 2023, largely due to increased financing needs and a weaker naira.
