Nigeria is hurtling toward a financial cliff — and those at the wheel seem more concerned with decorating the vehicle than steering it away from disaster. The Debt Management Office (DMO) has once again raised the red flag, announcing that the country’s public debt has surged to an eye-watering ₦149.39 trillion as of March 2025. This isn’t just a number — it’s a ticking time bomb that threatens the economic stability and future of a nation already grappling with poverty, insecurity, unemployment, and a weakening currency.
In just one year, Nigeria’s debt burden has ballooned by ₦27.72 trillion, a 22.8% increase from the same period in 2024. What this tells us is simple: the government is borrowing faster than the economy is growing, and that’s a recipe for economic bondage. The question isn’t whether the debt is sustainable — it’s how long before the weight of it crushes what’s left of Nigeria’s already staggering fiscal independence.
This isn’t mere fiscal expansion — this is addiction. Nigeria has become hooked on borrowing, reaching for loans like a drowning man clutching at straws, while the ship of state continues to drift further from shore. The worst part? There’s no lifeboat in sight.
At ₦70.63 trillion, external debt has surged by ₦14.61 trillion from the previous year, representing a whopping 26.1% rise. This figure, like the ocean, is deceptive in its calm. Beneath the surface lies the brutal truth — a weakened naira that inflates the local value of foreign loans, tightening the noose around Nigeria’s neck with every dip in exchange rate stability. The dollar amount may have only grown by $3.86 billion, but in naira terms, the pain is much deeper. The currency depreciation transforms what might seem like a manageable external loan portfolio into a monstrous burden.
Even at home, the situation is no less grim. Domestic debt now sits at ₦78.76 trillion, up from ₦65.65 trillion in March 2024. That’s another ₦13.11 trillion added to the tab — a staggering 20% leap. The Federal Government alone accounts for a lion’s share of this amount, yet there’s little to show for the astronomical borrowing in terms of infrastructure, healthcare, education, or job creation. Nigerians are still grappling with epileptic power, dilapidated schools, and unsafe roads, while the government issues bond after bond like confetti at a funeral.
What’s even more alarming is that domestic debt instruments — from Treasury Bills to Sukuk and Green Bonds — are increasingly crowding out private sector access to credit. Banks and investors, lured by high yields and low risk, prefer to lend to the government than to small businesses. This chokes entrepreneurship, stifles innovation, and further starves an already struggling job market of oxygen.
We must call this what it is: a mortgage on our future. A nation that spends more on debt servicing than on education, health, and security combined is not just failing — it’s collapsing under the weight of its misplaced priorities. According to available data, Nigeria’s debt servicing has become so burdensome that for every naira earned, more than half is already earmarked for repaying previous loans. What happens when the lenders stop answering the phone?
The shifting structure of Nigeria’s debt portfolio is equally worrying. As of Q1 2025, domestic debt accounts for 52.7%, while external debt makes up 47.3%. The rise in external debt — in naira terms — exposes the economy to the deadly swings of the foreign exchange market. With every depreciation of the naira, the burden grows heavier, interest payments balloon, and the real value of public spending contracts like a drought-stricken river.
Yet, amidst this avalanche of debt, the federal and state governments continue to borrow to pay salaries, borrow to service previous loans, and borrow to finance consumption — not investment. It’s like digging a well with a spoon in the middle of a desert. We are not borrowing to build, we are borrowing to breathe — and that is an economic death spiral.
Let’s not forget: the ordinary Nigerian bears the brunt of this fiscal recklessness. The naira has lost purchasing power, inflation is running riot, and foreign investors are fleeing. Jobs are harder to come by, and the cost of living continues to soar. For the average citizen, this debt means more taxes, fewer services, and dimmer hopes for prosperity.
The government can no longer hide behind fancy economic jargon and sugar-coated communiqués. This is not just about numbers — this is about accountability, transparency, and responsibility. Who is tracking the impact of these loans? What is the return on investment? What are we building with borrowed billions? Until these questions are answered with brutal honesty, Nigeria’s debt profile will continue to rise — along with public distrust.
It’s time for action. We need a national debt audit, we need to pause non-essential borrowing, and we need to rethink our economic priorities. There must be legislative oversight over all borrowing plans, and the executive must be compelled to link every loan to measurable outcomes. Civil society must rise to demand fiscal responsibility, and the media must keep asking the hard questions.
Nigeria cannot borrow its way into prosperity. If we don’t tighten the belt of accountability now, the next generation will inherit not just a broke nation, but a broken one.
The alarm bells are ringing — loud and clear. The question is, who’s listening?
Stanley Ugagbe is a Social Commentator. He can be reached via stanleyakomeno@gmail.com
