Nigeria’s current debt burden as of December 2024 stands at approximately $94.23 billion, equivalent to about N144.67 trillion.
This represents a significant increase of 48.58% from the previous year, reflecting a sharp rise in both external and domestic borrowings.
The external debt alone rose by about 83.89%, reaching around $45.78 billion by the end of 2024.
Sources indicate that the debt figure, expected to be around late 2024 to early 2025, ranges between $86 billion and $94 billion, depending on the exact quarter and currency conversions.
President Bola Tinubu recently requested the Nigerian Senate’s approval for a new external loan of about $21.5 billion as part of the 2025-2026 borrowing plan.
This is part of a broader multi-currency borrowing proposal that also includes loans in euros, yen, and local currency bonds, totaling roughly $23.5 billion in external loans plus other currency denominations. The $21.5 billion loan is the largest single portion of this request.
If the Senate approves this $21.5 billion loan, Nigeria’s total debt burden would increase from the current $94.23 billion to approximately $115.73 billion.
This is a straightforward addition of the new loan amount to the existing debt stock, reflecting a roughly 23% increase in the overall debt level.
In local currency terms, this could push Nigeria’s debt stock close to or beyond N182 trillion, considering the current exchange rates and the already rising debt figures.
The government justifies this borrowing by citing the need to close Nigeria’s significant infrastructure gap and to fund socio-economic projects aimed at skill acquisition, poverty reduction, food security, and employment generation across all 36 states and the Federal Capital Territory.
Tinubu emphasized that these projects were selected based on technical and economic evaluations to maximize their contribution to Nigeria’s development.
However, the rapid rise in Nigeria’s debt burden has raised concerns among economists and financial experts about debt sustainability.
The debt-to-GDP ratio is approaching critical thresholds, and the country’s weak revenue profile combined with foreign exchange volatility could exacerbate repayment challenges.
Currently, debt servicing consumes a large portion of government revenue, limiting funds available for capital expenditure and development.
The Nigeria Economic Society and other analysts have warned that the current borrowing trajectory could lead to a debt crisis, with the risk of pushing the country towards insolvency if not managed prudently.
The per capita debt burden, if the new loans are approved, would mean every Nigerian owes roughly N801,762 on paper, which is a worrying indicator for long-term fiscal health.
In summary, Nigeria’s current debt stands at about $94.23 billion, and with the Senate’s approval of Tinubu’s $21.5 billion loan request, the total debt would rise to around $115.73 billion.
While the government argues this borrowing is necessary for development and economic growth, the rapid accumulation of debt poses significant risks to Nigeria’s financial stability and requires careful management to avoid a debt crisis.
When not carefully managed, such huge funds leave an undertone of corruption rather than patriotic spending.