The National Orientation Agency (NOA) has stated that Nigeria’s debt profile has “significantly decreased” since President Bola Ahmed Tinubu assumed office in 2023. The agency announced this in an explainer released on October 24, citing data from the Debt Management Office (DMO), the Central Bank of Nigeria (CBN), and other reputable institutions.
According to the NOA, as of June 2023, Nigeria’s total public debt stood at $113.42 billion, with a debt-to-GDP ratio below 40 percent, a level regarded as sustainable by both the IMF and the World Bank. The agency projects that by December 2024, this figure could fall to about $94.22 billion, representing a reduction of over $19 billion within 18 months.
However, the DMO reported on October 12 that Nigeria’s public debt reached ₦152.39 trillion as of June 30, 2024, reflecting a ₦3 trillion increase compared to March. Despite this, the NOA maintained that the government’s debt management strategy has been effective.
“The reduction in Nigeria’s debt shows that the federal government is actively managing its borrowings and repayments. Instead of accumulating new debts, Nigeria has been offsetting some of its existing loans and avoiding unnecessary borrowings. This indicates growing fiscal discipline,” the NOA said.
Debt Servicing Before and After Tinubu
Before Tinubu took office, debt servicing consumed nearly all federal revenue. In early 2023, approximately 97 percent of government income went to debt repayments, leaving little room for essential public spending.
The NOA highlighted that the current administration has made progress in reversing this trend. It noted that the government repaid a $3.26 billion IMF loan within two years and spent around $7 billion on external debt servicing in the first 18 months of Tinubu’s tenure.
By the end of 2024, the debt-service-to-revenue ratio had improved to 68 percent, and further dropped to below 50 percent by the second quarter of 2025.
“While still high, this marks a major improvement, reflecting better fiscal management and enhanced revenue generation,” the agency noted.
Signs of Economic Recovery
According to the NOA, the government remains committed to fulfilling its debt obligations while implementing measures to diversify the economy and reduce dependence on oil. Efforts are ongoing to boost non-oil revenue through improved tax collection and plugging revenue leakages.
Debt Service Management of Nigeria (DSMN) Report
The Debt Service Management of Nigeria (DSMN) report, citing the African Development Bank’s Country Focus Report, revealed that Nigeria spent 4.1 percent of its GDP on debt servicing in 2024, up from 3.7 percent in 2023.
The report attributed the increase to rising interest rates, tight global financial conditions, and fresh borrowings to fund the budget deficit. It also noted that public debt rose to 52.3 percent of GDP in 2024—up from 41.5 percent the previous year—mainly due to higher financing needs and the weakened naira.
Despite these pressures, the report emphasized that the government’s fiscal reforms are beginning to yield results, with efforts focused on stabilizing public finances and sustaining economic growth.
