Nigeria’s public debt has climbed sharply under the administration of Bola Ahmed Tinubu, with economic analyst Dele Oye warning that the country’s borrowing pace is becoming increasingly unsustainable.
Oye, Chairman of the Alliance for Economic Research and Ethics and former head of the Organised Private Sector of Nigeria, disclosed that the Federal Government has added about N65.9 trillion to the nation’s debt profile within two years.
According to him, Nigeria’s total public debt has now reached N159.28 trillion as of April 2026, based on figures from the Debt Management Office. He added that the development means the average Nigerian now carries a debt burden estimated at N670,000.
The economist compared the current borrowing trend with previous administrations, noting that Nigeria accumulated just N12 trillion in debt during the country’s first 55 years after independence.
He recalled that former President Olusegun Obasanjo successfully negotiated the clearance of about $30 billion Paris Club debt in 2006 after making a $12 billion payment, temporarily leaving Nigeria almost free from external debt obligations.
Oye explained that the nation’s debt later increased to N12.06 trillion under former President Goodluck Ebele Jonathan before rising dramatically to N87.38 trillion during the administration of former President Muhammadu Buhari – an increase he described as more than 620 percent.
He argued that the current administration has accelerated the borrowing trend even further.
“To put it in perspective, Nigeria spent its first 55 years accumulating N12 trillion in debt, but more than five times that amount has been added within just 24 months,” Oye stated.
Although Nigeria’s debt-to-GDP ratio currently stands at 35.5 percent – still below the IMF’s 55 percent risk threshold – Oye stressed that the country’s major challenge is no longer the size of the debt itself, but the growing cost of servicing it.
He cited data from the Nigerian Economic Summit Group showing that debt servicing consumed 116.8 percent of government revenue in 2024 and 113 percent in the first quarter of 2025.
According to figures from the Central Bank of Nigeria, debt servicing in January 2025 stood at N696.27 billion, while retained revenue for the same period was only N483.47 billion, representing what he described as a 144 percent debt-service coverage ratio in one month.
Oye called for urgent fiscal reforms to prevent deeper economic strain. His recommendations included digitising tax collection, expanding the tax base, enforcing the Fiscal Responsibility Act with stricter penalties, restructuring Eurobond repayments ahead of the 2027–2029 maturity period, creating a protected stabilisation fund for oil revenues, and granting states greater powers to generate independent revenue.
“Nigeria has the resources and the human capacity to recover economically,” he said, adding that the country’s biggest obstacle remains the lack of consistent political will to implement long-term reforms.
Experienced broadcast journalist with over 5 years of experience in reporting, multimedia editing, and storytelling across both traditional and digital media. I currently work with Vision FM 92.1 and Daily Frontier, where I report on security, conflict, and humanitarian issues, while also translating news into Hausa and Pidgin to reach wider audiences.
I also serve as a correspondent for Daily Frontier in Plateau and Benue States, Nigeria, covering security, conflict, and humanitarian developments in the region.
I hold a Diploma in Mass Communication from Adamawa State Polytechnic and a Bachelor’s degree in Mass Communication from the National Open University of Nigeria.
