The National Orientation Agency (NOA) says Nigeria’s debt profile has “significantly decreased” since President Bola Tinubu took office in 2023, contrary to widespread misconceptions.
In an article dated October 24, the NOA said misinformation has created a false narrative about Nigeria’s debt burden, but scientific data from Nigeria’s Debt Management Office (DMO), Central Bank of Nigeria (CBN), ministry of finance, and Federal Inland Revenue Service (FIRS), the International Monetary Fund (IMF), and the World Bank, reveal a different story.
According to the NOA, Nigeria’s total public debt as of June 2023 was $113.42 billion, with a debt-to-GDP ratio below 40 percent, which is considered sustainable by the International Monetary Fund (IMF) and the World Bank.
The explainer noted that by December 2024, Nigeria’s total public debt had actually declined to approximately $94.22 billion, a reduction of over $19 billion in just 18 months.
The agency added that before Tinubu’s administration came on board, Nigeria’s debt servicing was consuming almost all government revenue.
The report showed that in the first half of 2023, nearly 97 percent of the federal government’s revenue was swallowed up by debt servicing, leaving little room for other essential expenditures
The agency said despite manageable debt, Nigeria faces economic difficulties due to over-reliance on volatile oil revenue it however reassured that the government is working to boost non-oil revenue through improved tax collection and reduced leakages.
