Nigeria’s rising public debt has again come under scrutiny following the exchange between the Minister of Finance, Taiwo Oyedele, and members of the Senate over the country’s borrowing pattern. The debate is important because the nation’s debt has continued to rise despite the removal of fuel subsidy and repeated assurances that government finances would improve.
Oyedele attributed much of the increase to the depreciation of the naira and the inclusion of inherited liabilities from the Muhammadu Buhari administration. While the minister’s explanation has some merit, it does not tell the whole story. Exchange rate changes can increase the naira value of foreign debt, but they cannot completely explain the alarming growth in Nigeria’s debt profile.
The borrowing culture
There is nothing inherently wrong with government borrowing. Responsible borrowing can help a country finance infrastructure, stimulate production and create the conditions for economic growth. The problem begins when borrowing becomes a regular solution to poor fiscal management.
Nigeria appears to be heading in that direction. The Tinubu administration has repeatedly approached the National Assembly for fresh borrowing approvals, even as Nigerians continue to question the cost of governance and the management of public resources.
The country’s debt has grown from about N12.5 trillion in 2015 to roughly N75 trillion in 2023, before rising further under the current administration. By mid-2026, the Debt Management Office put total public debt at about N159.28 trillion, equivalent to $110.97 billion.
That figure should worry every responsible policymaker.
Where is the borrowed money going?
The most important question is not whether Nigeria should borrow, but what it does with the money.
If borrowed funds are invested in productive infrastructure, power, transportation, industry and other sectors capable of generating economic value, such borrowing can be justified. But when borrowing mainly supports recurrent expenditure and an expensive bureaucracy, the country only accumulates obligations without creating sufficient capacity to repay them.
This is where the government must provide greater clarity. Nigerians deserve to know what every major borrowing approval is being used for and what measurable benefits it is expected to produce.
The management of public finances also needs greater transparency. Operating multiple budgets within the same period creates confusion and makes it harder to properly assess government spending. At a time when the country is already struggling with high debt-service costs, fiscal discipline should not be negotiable.
A burden on future generations
Nigeria’s growing debt is not simply an accounting figure. It represents an obligation that future governments and citizens will have to meet.
This makes the continued accumulation of debt particularly troubling. The government cannot keep borrowing without a clear strategy for reducing the fiscal deficit and managing its growing repayment obligations.
The National Assembly also has a critical role to play. Lawmakers should subject every borrowing request to rigorous scrutiny instead of treating loan approvals as routine. They must demand clear details about the purpose of each loan, the repayment terms and the expected economic benefits.
The Tinubu administration, on its part, must develop a credible debt management strategy and demonstrate greater restraint in public spending. The country cannot borrow its way out of every economic difficulty.
Nigeria has borrowed for decades, yet millions of citizens still lack reliable electricity, quality healthcare, good roads and decent jobs. The lesson is clear: borrowing without productive investment only transfers today’s problems to tomorrow.
The government must therefore slow down the borrowing spree, tighten public spending and ensure that every naira borrowed works for the Nigerian economy. Otherwise, the N159.28 trillion debt burden may become more than a financial problem; it could become a serious threat to the country’s economic future.
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