Nigeria’s N166.79trn debt: Expert reveals what rising borrowing means for Nigerians

Financial expert Professor Godwin Oyedokun has shed light on the implications of Nigeria's growing debt profile, which now stands at N166.79 trillion under President Bola Ahmed Tinubu. According to data from the Debt Management Office (DMO), Nigeria's debt has surged by 90.9 percent during Tinubu's administration, rising to N166.79 trillion by June 2026 from N159.35 trillion in March 2026.

This equates to an additional N7.44 trillion in the second quarter of 2026 alone. The DMO reported that external debt increased by 28.4 percent to $54.52 billion, while domestic debt climbed by 55 percent to N91.59 trillion. Oyedokun, speaking to DAILY POST, emphasized the significance of Nigeria's escalating debt, stating that it could put pressure on future public finances and affect the welfare of over 200 million Nigerians.

He highlighted that the critical aspect is not just the debt accumulation but how the borrowed funds are utilized, whether they generate sufficient economic returns to warrant repayment. Oyedokun advocated for a stronger debt management culture focused on measurable outcomes for citizens, ensuring that every borrowing is tied to a project or investment that boosts productivity.

He stressed the need for transparency, accountability, and demonstrating the benefits Nigerians would reap from the borrowed funds. Oyedokun warned that borrowing to finance recurrent expenditure without a solid repayment strategy would create a burden for future generations without providing corresponding assets. He argued that debt can be beneficial for development when managed carefully, but it becomes a serious fiscal concern when the returns from borrowed funds do not compensate for the obligations.

The key takeaway is that every Naira borrowed should contribute to building an economy that generates more income in the future.