Nigeria’s Debt to Hit N187.8trn by 2025 Amid Mounting Economic Strains
Debt Crisis Deepens as Borrowing Surges, Naira Weakens, and Revenue Declines
- Cardinalstone Report Projects Debt Surge: Nigeria’s debt stock is projected to rise to N187.79 trillion by 2025, driven by aggressive borrowing, naira depreciation, and escalating borrowing costs.
- 2024 Debt to Reach N153.04 Trillion: The report highlights a significant increase in debt, fueled by domestic and external borrowing, including $900 billion in dollar-denominated domestic bonds and a $2.20 billion Eurobond issuance.
- Debt Burden Intensifies: Debt has grown from N49.85 trillion in early 2023 to N134.30 trillion by mid-2024, with external debt accounting for 47% of total liabilities and domestic debt taking 53%.
- Rising Debt-Service Costs: Debt-service payments surged by 69% year-on-year to N6.0 trillion in H1 2024, consuming 50% of federal government revenue and leaving little for capital expenditures.
- Economic Concerns Mount: Despite a public debt-to-GDP ratio below the IMF’s 60% benchmark, weak revenue generation and foreign exchange risks heighten concerns over the sustainability of Nigeria’s debt trajectory.
