Nigeria’s debt-to-GDP ratio rose to 53%, but debt servicing reduced—Tinubu

Amid the huge debt burden on Nigeria, President Bola Tinubu has claimed that his administration’s bold policies have significantly improved the country’s debt position. “Our debt position is improving,” Mr Tinubu said in a nationwide broadcast to mark his two years in office. “While foreign exchange revaluation pushed our debt-to-GDP ratio to around 53%, our debt service-to-revenue ratio dropped from nearly 100% in 2022 to under 40% by 2024.” Mr Tinubu noted that his administration had paid off the country’s International Monetary Fund obligations, boasting of a 500% increase in external reserves last year. “We paid off our IMF obligations and grew our net external reserves by almost 500% from $4 billion in 2023 to over $23 billion by the end of 2024,” the president stated.
The president said his reforms also led to a significant increase in state governments’ revenue last year, acknowledging their influence on debt reduction and the development of critical infrastructure. “Thanks to our reforms, state revenue increased by over N6 trillion in 2024, ensuring that subnational governments can reduce their debt burden, meet salaries and pension obligations on a timely basis, and invest more in critical infrastructure and human capital development,” the president noted.
Mr Tinubu’s claim came days after he wrote to the National Assembly requesting legislative approval for several fresh loans totalling N40.5 trillion amidst a worsening economic climate in the country. As of December 2024, the country’s total public debt stood at N144.67 trillion, as reported by the Debt Management Office. The figure represented a whopping 48.58 per cent rise from the N97.34 trillion recorded at the end of 2023. The jump was attributed to substantial increases in both domestic and external borrowings, fueled by the depreciation of the country’s currency against major foreign currencies.
The proposed borrowing, if approved, would potentially push Nigeria’s total public debt from N144.67 trillion at the end of 2024 to more than N182.91 trillion by 2026. Several civil society organisations, including the Human Rights Writers Association of Nigeria and the Socio-Economic Rights and Accountability Project, have condemned the loan request, urging lawmakers to reject it immediately. Mr Tinubu’s administration has faced difficulties in raising revenues as tax receipts plummeted amid low investor confidence, which has led to the collapse of many entities in the manufacturing and service sectors. GlaxoSmithKline and Jumia were among dozens of major companies to exit the Nigerian economy since the erstwhile Lagos governor assumed office in 2023.