The Debt Management Office (DMO) has corrected widespread misinformation about Nigeria’s public debt, confirming that the actual figure stood at **N87.38 trillion** as of June 30, 2023, not N21 trillion as earlier reported. This clarification follows misleading media reports that overstated the country’s financial liabilities and raised public concerns about the nation’s economic health.
In a statement issued on Monday, the DMO explained that the debt figure reflects obligations across all levels of government, including external and domestic debt owed by the Federal Government, the 36 states, and the Federal Capital Territory (FCT). The agency emphasized the importance of accurate reporting on sensitive financial matters to avoid unnecessary panic. “As of June 30, 2023, the total public debt stock was N87.38 trillion. This figure accounts for external and domestic debt across all tiers of government, contrary to claims of N21 trillion,” the statement read.
The false reports had alleged that Nigeria’s public debt rose from N21 trillion to N142 trillion under President Bola Ahmed Tinubu’s administration, creating confusion about the actual state of the country’s finances. The DMO expressed disappointment over the dissemination of unverified data, urging the media and the public to rely on official publications for accurate information. The agency noted that clear and transparent communication is critical for maintaining public trust, particularly on financial issues.
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The clarified debt figure presents a more comprehensive assessment of Nigeria’s financial obligations. It includes external borrowings from international institutions such as the International Monetary Fund (IMF), World Bank, and African Development Bank, as well as domestic debt instruments like treasury bills and government bonds. Economic analysts argue that addressing the growing debt burden will require bold reforms to boost revenue generation, curb excessive spending, and ensure sustainable debt management practices.
Meanwhile, Nigeria’s debt servicing obligations remain a significant challenge for the economy. Recent data reveals that payments to multilateral creditors, including the IMF and World Bank, accounted for 88.2% of the total debt servicing expenditure in the third quarter of 2024, while bilateral creditors, such as China, made up 11.8%. In the same period, Nigeria spent approximately $712.7 million on servicing multilateral debts. Out of this amount, $406.9 million was paid to the IMF, $218.7 million to the World Bank, and $62.8 million to the African Development Fund.
The financial strain on the country’s economy is evident, especially as revenue streams decline while public spending remains high. In the 2025 budget currently before the National Assembly, the Federal Government has proposed allocating N16.33 trillion for debt servicing out of the total planned expenditure of N49.7 trillion. This highlights the urgent need for fiscal discipline and strategic economic planning.
Despite these challenges, the DMO highlighted a recent success with Nigeria’s issuance of $2.2 billion Eurobonds, which attracted significant investor interest and received subscriptions exceeding $9 billion. This strong market response, according to the agency, demonstrates growing confidence in Nigeria’s financial instruments on the international stage.
The DMO reiterated its commitment to providing reliable and transparent data to guide public discourse and policy decisions. Experts, however, caution that Nigeria’s rising debt profile calls for immediate action to prevent further economic strain. Addressing the situation will require comprehensive fiscal reforms, reduced dependence on borrowing, and structural changes to stimulate sustainable economic growth. As the country navigates these financial challenges, the focus remains on finding solutions to secure long-term stability for its economy.
