Concerns as Nigeria’s borrowing hits N166.79tn, debt per citizen rises above N700,000

Economists and financial experts have raised concerns over Nigeria’s rising debt profile, which reached N166.79 trillion in June 2026 amid plans by the Federal Government to secure a fresh $1.5 billion World Bank loan.

DAILY POST reports that figures from the Debt Management Office (DMO) showed that the country’s debt increased by N87.4 trillion, or 90.9 percent, from N79.39 trillion in May 2023.

The DMO said external debt stood at $54.52 billion, while domestic debt rose to N91.59 trillion.

Professor of Accounting at Lead City University, Godwin Oyedokun, urged the government to assess the proposed loan based on its purpose, cost and repayment terms.

“The proposed additional $1.5 billion should be assessed against its purpose, cost, repayment terms and, most importantly, whether it will finance productive investments that generate jobs, revenue and economic growth rather than recurrent expenditure,” he said.

Economist Gbolade Idakolo warned that rising borrowing and debt servicing could undermine future development.

“The DMO, which manages Nigeria’s debt structure, has also not strategically been up to the task in ensuring that the Federal Government does not overshoot the debt ratio,” he said.

Idakolo urged Nigeria to reduce its borrowing appetite to avoid burdening future generations.