Data released by the Debt Management Office shows that in just 19 months under Bola Tinubu’s administration, Nigeria’s total debt portfolio increased by ₦55.2 trillion.
This rise in debt comes despite the administration’s repeated promises to reduce the country’s reliance on borrowing.
For example, in August 2023, during the inauguration of the Presidential Committee on Tax Reforms, President Tinubu pledged to cut down Nigeria’s dependence on loans to fund public spending.
The State House website published the following statement in August 2023:
“Bola Tinubu in Abuja expressed his resolute commitment to break the vicious cycle of overreliance on borrowing for public spending, and the resulting burden of debt servicing it places on the management of Nigeria’s limited government revenues.”
Despite the promises made under the “Renewed Hope Agenda,” the Tinubu administration appears determined to keep expanding Nigeria’s debt portfolio.
A review shows that as of June 30, 2023 — marking the end of Tinubu’s first month in office — the Federal Government’s external debt (excluding debts owed by states and the Federal Capital Territory) stood at ₦29.8 trillion.
However, by December 31, 2024, that figure had climbed to ₦62.917 trillion, reflecting a ₦33.1 trillion increase in external debt within an 18-month span.
On the domestic front, the Federal Government’s debt was ₦48.3 trillion in June 2023. By December 2024, this had surged to ₦70.4 trillion — a jump of ₦22.1 trillion.
Altogether, the Federal Government’s total debt (excluding state and FCT debt) grew by ₦55.2 trillion by the end of December 2024.
A separate review of the Central Bank of Nigeria’s Q4 2024 economic report revealed that the government spent ₦2.199 trillion on debt servicing in the last quarter of 2024.
This amount surpassed the ₦2.067 trillion allocated for debt servicing in that period, as well as the ₦2.055 trillion spent in Q3 2024.
Furthermore, Q4 2024 debt servicing was significantly higher than what was recorded in the same quarter of 2023, when ₦1.876 trillion was used.
The report also noted that Nigeria’s total public debt stock reached 51.29% of its Gross Domestic Product (GDP), still about 18% below the 70% ceiling set for market-access countries.
“At end-September 2024, public debt stock remained within the 70.00 per cent threshold for Market-Access Countries.”
“Total public debt outstanding stood at ₦142.32 trillion (51.29% of GDP), at end-September 2024, and was 5.97 per cent higher than the level at end-June 2024. The rise was due largely to revaluation effects (arising from exchange rate depreciation) and new borrowings to finance the deficit outlined in the 2024 Appropriation Act.”
