Nigeria’s total public debt may skyrocket to an estimated ₦160 trillion by the end of December 2025, amid continued borrowing by the Federal Government and rising debt servicing obligations.
Financial analysts and economic experts have raised concerns following recent reports indicating a sharp rise in the country’s debt stock, which stood at ₦121.67 trillion as of March 2025, according to the Debt Management Office (DMO). The alarming projection of ₦160 trillion signals a possible increase of nearly ₦40 trillion within just nine months if current fiscal patterns persist.
The ballooning debt has been attributed to a combination of factors, including deficit financing, devaluation of the naira, rising domestic borrowings, and fresh external loans aimed at stabilizing the economy and funding key infrastructure projects.
Experts warn that the growing debt burden, if not carefully managed, could lead to long-term economic instability, with implications for inflation, interest rates, capital flight, and fiscal sustainability. Some have urged the Federal Government to intensify efforts to boost non-oil revenues, cut down on recurrent expenditures, and curb leakages across MDAs (Ministries, Departments, and Agencies).
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, had earlier assured that the government remains committed to responsible borrowing and implementing strategic economic reforms to drive growth. However, economic observers insist that unless urgent steps are taken, the country may soon face severe challenges in meeting its debt servicing obligations, which already consume a significant portion of the national budget.
As Nigeria looks to end 2025 on a stable financial footing, all eyes remain on the fiscal authorities to prioritize transparency, accountability, and sustainable debt management practices.
