Nigeria’s Debt Paradox: Surface Stability Hides Deepening Fiscal Challenges BODY: Lagos, Nigeria – Nigeria’s economic landscape appears to be stabilizing on the surface, with its Debt Burden Index (DBI) showing a decline from 83. 6 points in 2023 to 70. 9 points in 2024.
However, the Nigerian Economic Summit Group (NESG) cautions that this improvement is superficial, as it is driven by a temporary moderation in debt-servicing pressures, not a sustainable reduction in debt levels.
The nation’s total public debt reached an astonishing ₦159. 27 trillion by the end of 2025, with an estimated ₦724,000 debt per citizen.
The DBI’s decline, while indicating a slowing of the debt burden, masks underlying fiscal vulnerabilities, as Nigeria’s public debt-to-GDP ratio surged to 40. 6 percent in 2024. Analysts warn that this trend raises concerns over the government’s ability to fund critical sectors like healthcare, education, infrastructure, and security, while continuing to meet debt obligations.
The NESG suggests that while the DBI might suggest easing debt stress, the underlying fiscal pressures remain a threat to the country’s economic outlook.
The National Bureau of Statistics (NBS) reported that the total public debt stock stood at ₦159. 28 trillion ($110. 97 billion) in the fourth quarter of 2025, marking a 3.
90% increase from the previous quarter. This rise in debt underscores the nation’s reliance on borrowing to finance recurrent and capital expenditure, with debt servicing consuming up to 60% of the federal government’s budget in some periods.
The country’s debt crisis is not just a financial issue but a reflection of deeper economic challenges, including weak revenue generation and a heavy dependence on oil exports.
The naira depreciation and the formalization of large central bank overdrafts into long — term liabilities have further complicated the situation.
The NESG maintains that improvements in headline figures continue to mask persistent structural imbalances, suggesting that Nigeria remains in a “high-risk fiscal environment. “S&P Global Ratings has highlighted Nigeria among African countries facing $90 billion in debt repayments in 2026, underscoring the urgency of finding sustainable solutions. While some indicators suggest a stabilizing trend, the reality of Nigeria’s debt crisis is far from easing.
The nation must navigate a treacherous economic landscape, balancing immediate fiscal pressures with long — term sustainability.
The challenge is not just to manage the debt but to foster economic growth and stability for the future.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: Africa.businessinsider
Source: Segun Adeyemi
