Nigeria’s Public Debt/Debt Servicing, Fiscal Sustainability, Economic Implications and Policy Options

In a summarized perspective, Nigeria’s rising public debt has become one of the country’s most significant fiscal challenges. While the country’s debt-to-GDP ratio remains within internationally acceptable levels, the government’s limited revenue base has resulted in a disproportionately high debt service burden. More than half of federal government revenue is devoted to servicing debt, leaving limited resources for infrastructure development, healthcare, education, security, and other critical public services.

This policy brief examines Nigeria’s current debt profile, the mechanisms through which debt is serviced, the implications for the economy and citizens, and policy measures that can strengthen fiscal sustainability.

Nigeria’s Current Public Debt Profile: Nigeria’s total public debt, including obligations of the Federal Government, the 36 states and the Federal Capital Territory (FCT), is estimated at approximately ₦159.28 trillion (about US$111 billion).