Nigeria faces rising debt concerns as external debt reaches $145 billion

Nigeria’s external debt stock rose to $145.02 billion by the end of 2025, a 6.6 percent increase from the previous year, according to the World Bank’s International Debt Report 2026. This represents a $61.8 billion increase over the last decade.

Former President Olusegun Obasanjo has criticized the scale of borrowing, suggesting that future generations are being mortgaged. In response, President Bola Tinubu defended the federal government’s request for $7.707 billion to finance the 2026 budget deficit, stating that loans are intended for productive capital investments in infrastructure such as roads, ports, rail, and power to drive long-term growth.

The Nigeria Democratic Congress (NDC) has challenged the administration’s borrowing-dependent governance model. The party, fielding Peter Obi and Rabiu Musa Kwankwaso for the 2027 election, argued that rising debt has not translated into adequate funding for essential services. The NDC also questioned the management of revenue following the removal of fuel subsidies and criticized the high debt-service-to-revenue ratio amid rising poverty and unemployment.