Nigeria’s total public debt is projected to surge to an alarming ₦160 trillion as the Federal Government under President Bola Ahmed Tinubu makes fresh plans to borrow ₦9.3 trillion to finance the 2025 budget deficit. This development comes on the heels of growing concerns over the country’s ballooning debt burden, which already stood at ₦121 trillion as of March 2025, according to data from the Debt Management Office (DMO). The proposed borrowing is part of the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) presented to the National Assembly by the Minister of Finance, Wale Edun. The government argues that the new loan is necessary to support critical infrastructure, service existing debts, and sustain recurrent expenditure. However, economists and civic groups have raised red flags, warning that continued borrowing without clear strategies for revenue growth and debt servicing could push the nation into deeper fiscal distress. “It’s deeply troubling. We are spending over 90% of our revenue on debt servicing alone. Adding more debt is like pouring water into a leaking bucket,” said Kemi Awoniyi, a financial analyst based in Lagos. Critics have also accused the Tinubu-led administration of failing to curb wasteful spending, even as the country grapples with inflation, unemployment, and a weakened naira. As the Senate prepares to deliberate on the borrowing request in the coming weeks, pressure is mounting on lawmakers to demand greater transparency and accountability in the use of borrowed funds. The coming months may prove critical as Nigerians watch how the government balances its ambitious fiscal plans against the reality of an already strained economy.
