Nigeria’s public debt reached N166.79 trillion by June 2026 under President Bola Ahmed Tinubu, raising concerns about the effect of heavier borrowing on government finances and citizens’ welfare, according to financial analyst and Lead City University, Ibadan, accounting professor Godwin Oyedokun.
Figures from the Debt Management Office (DMO) show that the country’s debt expanded by N87.4 trillion, or 90.9 percent, during Tinubu’s administration to reach N166.79 trillion in June 2026.
The total represented an increase of N7.44 trillion during the second quarter, up from N159.35 trillion in March 2026. External obligations climbed 28.4 percent to $54.52 billion, while domestic debt rose 55 percent to N91.59 trillion.
The Federal Government held the largest share of the liabilities, with N152.77 trillion, equivalent to roughly 91.6 percent of the overall debt stock.
Oyedokun said the trend required urgent scrutiny because public borrowing ultimately affects the living conditions of more than 200 million Nigerians. He said higher debt could put additional strain on future budgets, particularly by limiting spending on services and sectors that directly benefit citizens.
He said the central question was not simply the amount borrowed, but how the money was deployed and whether it produced enough economic value to support repayment. Rising debt-service costs, he added, could compete with allocations for education, healthcare, infrastructure, social protection and other essential services. They could also reduce the government’s room to respond to future economic shocks.
Oyedokun argued that Nigeria needed a more disciplined approach to debt management, built around transparency, accountability and results that could be measured in terms of public benefit.
In his view, each major borrowing programme should be tied to a project or investment that raises productive capacity, creates jobs, generates revenue and supports economic expansion. Borrowing for recurring expenditure without a credible plan to repay it, he warned, would leave future generations with obligations but not necessarily with assets of comparable value.
He said public debate should move beyond the question of how much Nigeria owes and examine what citizens have received in exchange for the borrowing. Debt, he noted, can support development when managed prudently, but becomes a serious fiscal risk when the growth and revenue produced by borrowed funds are too weak to cover repayment costs.
The objective, Oyedokun said, should be to ensure that each naira borrowed today helps build an economy capable of generating greater income in the future.
