A fresh policy report has triggered heated national debate after alleging that Nigeria’s debt profile has ballooned at an alarming speed under the administration of President Bola Ahmed Tinubu….WATCH VIDEO HERE
According to a policy brief released by the Alliance for Economic Research and Ethics LTD/GTE, Nigeria is now facing what it describes as not just a debt crisis, but a full-blown revenue and governance emergency.
The report claims that Nigeria’s total public debt rose sharply from ₦87.38 trillion in June 2023 to about ₦159.28 trillion by the end of 2025.
It further alleged that within just two years in office, the Tinubu administration alone accounted for roughly ₦65.9 trillion of the increase.
The organisation compared this figure with Nigeria’s long-term debt history, claiming the country accumulated about ₦12.06 trillion between 1960 and 2015 — meaning recent borrowing reportedly exceeds decades of past accumulation.
The report also argued that successive governments contributed to Nigeria’s current fiscal strain, including administrations from former President Olusegun Obasanjo, former President Goodluck Jonathan, and former President Muhammadu Buhari.
However, it stressed that the most worrying issue is not just how much Nigeria owes, but how the country is struggling to even generate enough revenue to service its debts.
According to the report, Nigeria’s debt servicing burden has now reached a critical level where government spends more on repaying loans than it actually earns in revenue.
It claimed that in 2024, Nigeria’s debt service-to-revenue ratio stood at 116.8%, meaning the country was effectively borrowing or struggling to survive just to repay existing debts.
The brief added that although Nigeria’s debt-to-GDP ratio of about 35.5% may look moderate compared to some countries, the real danger lies in weak revenue generation and poor tax collection.
It also highlighted a ₦25.3 trillion budget deficit in the 2026 fiscal plan, warning that continued borrowing could worsen inflation, weaken the naira, and reduce private sector growth.
The report further warned that high interest rates are already choking businesses, making it harder for companies to expand, employ workers, or survive economic pressure.
To address the crisis, the organisation recommended urgent reforms including digital tax collection, expansion of taxation to the informal and digital economy, improved transparency, and strict enforcement of fiscal responsibility laws.
The report has since sparked mixed reactions online, with some Nigerians expressing concern over the country’s financial direction, while others argue that borrowing is necessary for infrastructure development.
As economic debates intensify, many are now watching closely to see how the Federal Government will respond to the growing criticism surrounding Nigeria’s rising debt profile.
