At N166trn, Nigeria’s debt-to-GDP nears 40%

Nigeria's total public debt reached a staggering N166.79 trillion as of June 30, 2026, bringing the country's debt burden to nearly 40 percent of its gross domestic product (GDP). This worrying figure was disclosed by the Debt Management Office (DMO), showing a 4.7 percent increase over the previous quarter. Domestic borrowing continues to account for the majority of the debt, with domestic debt standing at N91.59 trillion, or 54.91 percent of the total.

The Federal Government of Nigeria (FGN) remains responsible for a significant portion of the debt, accounting for approximately 91.6 percent of the total. The FGN's external debt amounts to N75.20 trillion, which is 45.09 percent of the overall public debt, while domestic obligations make up the remaining N87 trillion, or 52.16 percent.

Economists have expressed concerns over the debt sustainability, borrowing efficiency, and the use of borrowed funds. Bismarck Rewane, an economist and CEO of Financial Derivatives Company, emphasized that the size of the debt is a major cause for concern, especially given Nigeria's lack of corresponding productivity growth. He noted that the government should focus on the purposes for which the borrowed funds were used, rather than merely the size of the debt.

Another major concern is the cost of servicing the accumulated debt, which adds to the government's financial burden. FGN bonds remain the largest component of the Federal Government's domestic debt, with an outstanding value of N64.84 trillion, representing 74.53 percent of the portfolio. Nigerian Treasury Bills and FGN Sukuk also contribute significantly to the domestic debt, making up 22.39 percent and 14.63 percent of the total, respectively.