Nigeria’s N159 trillion debt is terrifying when viewed in naira, experts warn
By Aboki Forex —
Economic experts have described Nigeria’s fiscal obligations as terrifying when analysed strictly in naira terms. They warn that the country’s debt, now over N159 trillion, could hinder development.
Speaking to the Nigerian Tribune, economist Dr. Iyke Ezeugo said the public debt jumped to N159.28 trillion in a matter of months. He said the immediate fear is that the country is being blindly auctioned off to the highest bidder. But he added that looking at the debt only through the naira lens creates a terrifying but distorted illusion.
Ezeugo said to understand the true weight of Nigeria’s borrowing, we must look past the headlines. We must examine hard currency, dissect the fine print, and identify the specific creditors holding the nation’s future as collateral.
He explained that the leap in the naira figure, now roughly $110.97 billion, is mainly a mathematical effect of the currency’s devaluation. The underlying dollar debt tells a more calculated story.
“It is a story of aggressive, high-stakes fiscal restructuring,” Ezeugo said. “The government is rapidly swapping cheap, conditional debt for expensive commercial bonds, formalising hidden overdrafts, and tying the nation’s infrastructure to rigid foreign contracts.”
Domestic borrowing accounts for the largest share at N84.85 trillion, or 53.27 percent. But external debt, standing at $51.86 billion, is where the nation’s sovereignty is truly negotiated.
Multilateral institutions hold a combined $23.85 billion. The World Bank alone accounts for $19.89 billion. These are the cheapest loans, with interest rates of 1 to 2 percent, but they act as a rigid policy trap.
Bilateral loans stand at $6.72 billion, dominated by the Export-Import Bank of China. Ezeugo said Chinese debt funds visible mega-projects. But these loans legally mandate that Chinese state-owned enterprises be the sole contractors. China secures guaranteed dollar-denominated export contracts for its own industries, which Nigeria must repay over decades.
The most controversial part of the domestic debt is the securitisation of N23.9 trillion in ways that have raised concerns among analysts.