Nigeria’s ₦166.7tn Debt: Why Debt-to-GDP Is Not the Full Picture

Nigeria’s public debt was estimated at about ₦166.7 trillion in the second quarter of 2026, according to figures cited from the Federal Ministry of Finance. The total includes obligations owed by the Federal Government, states and the Federal Capital Territory. The Presidency has argued that Nigeria is not among Africa’s most indebted countries when measured by debt-to-GDP ratio. Nigeria’s ratio is estimated at about 35.5 per cent, while the IMF projected 32.3 per cent for 2026 and 33.1 per cent for 2027. However, economists say debt-to-GDP alone does not show whether a country can comfortably manage its obligations. Revenue generation, debt-service costs, exchange-rate pressure, interest rates and the maturity of the debt are also critical. With public debt rising from ₦159.28 trillion at the end of 2025, the key concern is whether government revenue can grow fast enough to meet debt-servicing costs.

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