Nigeria’s debt crisis has deepened, with total public debt now exceeding ₦150 trillion, after over ₦60 trillion was added in less than two years under President Bola Tinubu.
When Tinubu assumed office in May 2023, Nigeria’s debt stood at about ₦87 trillion. It has since risen to between ₦149 trillion and ₦153 trillion, marking a rapid expansion in a short period.
The latest addition is a £746 million loan from the United Kingdom, valued at roughly ₦1.2 trillion, further increasing Nigeria’s financial obligations.
The deal is structured as an export finance facility backed by UK Export Finance, with funding tied to the redevelopment of Lagos ports. This arrangement directs spending toward foreign contractors and suppliers, effectively locking Nigeria into externally driven project execution.
Through this structure, the United Kingdom secures its commercial interests while limiting its risk exposure, leaving Nigeria with long-term repayment commitments.
Within two years, the administration has accumulated an estimated ₦18 trillion to ₦25 trillion in fresh borrowing, as the overall debt stock continues to rise.
Debt servicing now consumes a large share of government revenue, reducing fiscal space and increasing financial pressure.
Nigeria is operating within a long-term debt cycle.
Most of these loans have repayment periods of up to 40 years, but instead of reducing the debt, the system relies on continuous refinancing. Existing obligations are sustained with new borrowing.
At the current pace, it could take 20 to 40 years or more to reduce the debt, and only if borrowing slows. The pattern remains consistent: borrow, service, and borrow again.
With total debt above ₦150 trillion and still rising, Nigeria remains on a path of sustained borrowing, with repayment stretching across generations.
