Nigeria’s total public debt climbed to N166.79 trillion in June 2026 as the government considers seeking a further $1.5 billion from the World Bank, prompting warnings from economists and civil-society groups about the cost and purpose of additional borrowing.
Debt reaches record level
- Figures from the Debt Management Office (DMO) show that Nigeria’s debt increased by N87.4 trillion, or 90.9 percent, from N79.39 trillion in May 2023 to N166.79 trillion in June 2026. The rise occurred during President Bola Tinubu’s administration.
- External obligations grew 28.4 percent to $54.52 billion, while domestic liabilities rose 55 percent to N91.59 trillion during the period.
- On a per-person basis, the latest total represents debt of N716,822 for every Nigerian. That compares with N383,442 three years earlier, an increase of 87 percent.
- Debt-servicing costs stood at N2.14 trillion in the second quarter of 2026, down from N3.14 trillion, based on the DMO’s figures.
Political and civil-society response
The increase has drawn criticism from opposition figures, including Atiku Abubakar of the African Democratic Congress. He said the Tinubu administration should explain the consequences of the existing debt burden to Nigerians before taking on the proposed $1.5 billion World Bank facility.
ActionAid Nigeria also criticised the country’s expanding debt-service obligations, arguing that the rising cost of servicing loans could restrict the funds available for development.
Borrowing must support development
Godwin Oyedokun, an accounting professor at Lead City University, said Nigeria’s debt position deserved closer examination. He argued that the discussion should not amount to an automatic rejection of every new loan, but should instead focus on how borrowing is structured and used.
In his view, the proposed $1.5 billion facility should be judged by its intended use, financing cost, repayment conditions and the economic gains expected from it. The central question, he said, is whether the money would fund projects that create jobs, expand government revenue and deliver durable growth, rather than pay for recurrent spending.
Oyedokun said borrowing can contribute to development when it is directed toward the right priorities and administered openly. The main issue, he added, is the quality of spending and the accountability surrounding borrowed money.
He noted that World Bank loans and credits to Nigeria have included programmes supporting investment and employment, agriculture, and financing for micro, small and medium-sized enterprises. However, he said securing the funds alone was insufficient: the government must show how they will produce measurable benefits for the economy.
The value created by a loan, he said, must be large enough to justify the eventual repayment obligations. Without that return, continued borrowing would further narrow Nigeria’s future fiscal room.
Oyedokun warned that excessive debt could weaken the government’s capacity to finance education, healthcare, infrastructure and employment opportunities for the country’s young population. If loans do not generate adequate returns, debt payments could absorb resources that would otherwise go to these areas.
He called for a clear link between borrowing and development targets. In his view, each major loan should be tied to defined economic results, open reporting on how the funds are spent, rigorous project supervision and a credible plan for repayment.
He also urged tighter monitoring to ensure debt-funded projects are completed and deliver the benefits used to justify the borrowing. Major facilities, he said, should be subject to transparent disbursement procedures and strict implementation checks.
The government should give the public enough information about the terms of significant borrowing programmes and the results they are expected to achieve. Oyedokun said every major facility needs a reliable repayment framework because the financial burden ultimately falls on Nigeria’s economy and future generations.
He said the debt debate should therefore focus not only on the total amount borrowed, but also on the purpose of the loans, the value they create and the people who will bear the repayment cost.
Warning over debt sustainability
Gbolade Idakolo, an economist and chief executive of SD & D Capital Management, said borrowing under President Tinubu had increased the cost of servicing Nigeria’s obligations. He argued that federal borrowing during the past three years had added to the debt burden while the effects of the government’s economic reforms remained largely absent from the daily lives of ordinary Nigerians.
Idakolo described a debt exposure of more than N700,000 per person as alarming, particularly as Nigeria’s population continues to expand.
He said the past three years had combined heavier borrowing with very high debt-service costs. In his assessment, even though the reforms were intended to reinforce the economy, most citizens had yet to experience meaningful benefits.
Loans for infrastructure and other development programmes, he added, should result in clear improvements for citizens. The expected gains from such projects are currently not matching the scale of the borrowing, he said.
Idakolo also questioned whether the DMO has been sufficiently effective in managing the structure of Nigeria’s debt. He said the agency needed to do more to prevent the federal government from moving beyond sustainable debt levels.
He warned that excessive borrowing could leave Nigeria exposed to insolvency if it faced a severe economic shock or a natural disaster. In his assessment, the DMO has not acted strategically enough to stop the government from exceeding a safe debt ratio.
Idakolo urged policymakers to reduce Nigeria’s reliance on new loans. Continued debt accumulation, he said, could burden younger Nigerians and limit future development if debt servicing continues to take priority over investment in the next generation.
