The National Orientation Agency (NOA) has announced that Nigeria’s public debt has “significantly decreased” since President Bola Tinubu assumed office in 2023, countering public misconceptions.
Citing an explainer from October 24, backed by data from the Debt Management Office (DMO), Central Bank of Nigeria (CBN), and other sources, the NOA reported that Nigeria’s total public debt stood at $113.42 billion in June 2023, with a debt-to-GDP ratio below 40%, deemed sustainable by the IMF and World Bank.
The agency projects a further drop to $94.22 billion by December 2024, a reduction of over $19 billion in 18 months.
Despite this, the DMO noted on October 12 that Nigeria’s public debt reached N152.39 trillion by June 30, up N3 trillion from March, reflecting currency fluctuations and new borrowing.
The NOA emphasized, “The reduction shows the government is actively managing borrowings and repayments, avoiding unnecessary loans and making down payments on existing ones.”
Before Tinubu’s tenure, debt servicing consumed 97% of federal revenue in early 2023, limiting funds for essential services.
The NOA highlighted progress, including the repayment of a $3.26 billion IMF loan within two years and $7 billion in external debt servicing in Tinubu’s first 18 months.
By Q2 2025, the debt service-to-revenue ratio dropped to below 50% from 68% in late 2024, signaling improved fiscal management and higher revenue.
However, the Debt Service Management of Nigeria (DSMN) report, cited by the African Development Bank, revealed that debt servicing rose to 4.1% of GDP in 2024 from 3.7% in 2023, driven by higher interest rates and a weaker naira.
Public debt also climbed to 52.3% of GDP in 2024 from 41.5% in 2023 due to increased borrowing to address budget deficits.
The NOA acknowledged economic challenges from Nigeria’s reliance on volatile oil revenue but noted government efforts to boost non-oil revenue through better tax collection and reduced leakages, signaling a path toward fiscal stability.
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