Nigeria’s public debt has soared since 2010, with domestic debt up 2,020% and external debt up 1,000% by mid 2025

Key Takeaways

  • Nigeria’s domestic debt jumped from ₦3.8 trillion in 2010 to ₦80.55 trillion by mid-2025.
  • Foreign debts increased from $4.27 billion in 2010 to $46.98 billion in 2025, reflecting growing reliance on external financing.
  • Debt accumulation surged notably after 2020, coinciding with pandemic spending, naira depreciation, and higher fiscal deficits.
  • The widening gap between revenue and debt service raises questions about Nigeria’s long-term debt sustainability.

Nigeria’s debt journey over the past 15 years paints a clear picture of persistent fiscal strain. From just ₦3.8 trillion in 2010, domestic borrowing has ballooned to over ₦80 trillion, fueled by budget deficits, falling oil revenues, and rising governance costs. External debt has also expanded steadily, from $4.27 billion to nearly $47 billion as Nigeria sought foreign funding to stabilise its economy. This consistent upward trend underscores a growing dependence on debt to finance national expenditure, making debt management and revenue growth more critical than ever.

Source:

Debt Management Office (DMO)

Period:

June 2010 - June 2025
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