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The National Orientation Agency (NOA) has said that Nigeria’s debt burden has “significantly decreased” since President Bola Tinubu took office in 2023, dismissing public claims that the country’s debt has continued to rise.
The agency made the clarification in an official explainer shared on its X handle on Monday, October 24, 2025. The statement comes shortly after the Debt Management Office (DMO) reported that Nigeria’s total public debt had risen to ₦152.40 trillion as of June 30, 2025.
According to the DMO, the figure represents an increase of ₦3.01 trillion from ₦149.39 trillion recorded at the end of March 2025 — a 2.01 per cent rise in just three months. The agency also said that in dollar terms, Nigeria’s debt grew from $97.24 billion to $99.66 billion, showing a 2.49 per cent increase.
The DMO explained that Nigeria’s external debt climbed from $45.98 billion (₦70.63 trillion) in March 2025 to $46.98 billion (₦71.85 trillion) in June 2025.
However, the NOA insisted that the figures must be properly understood in context. It said the apparent rise in naira terms is mainly due to the depreciation of the currency rather than an actual increase in the total debt stock.
According to the agency, data from the DMO, the Central Bank of Nigeria (CBN), the Ministry of Finance, and the Federal Inland Revenue Service (FIRS) all confirm that the federal government has been actively reducing the country’s overall debt since mid-2023.
The NOA stated that Nigeria’s total public debt stood at $113.42 billion as of June 2023, with a debt-to-GDP ratio below 40 percent, which falls within the sustainability limits set by the International Monetary Fund (IMF) and the World Bank.
It explained that by December 2024, the figure had dropped to about $94.22 billion — representing a reduction of more than $19 billion within 18 months.
“The reduction in Nigeria’s debt shows that the federal government is actively managing its borrowings and repayments,” the NOA said. “Instead of accumulating more debt, Nigeria has been making down payments on some of its loans and avoiding unnecessary new borrowings. This is a positive sign of fiscal responsibility.”
Before the Tinubu administration, the agency added, Nigeria’s debt servicing costs consumed almost all of the country’s revenue. In the first half of 2023, about 97 per cent of government revenue went into debt payments. But by the end of 2024, the figure had improved to 68 per cent, and it dropped further to less than 50 per cent by the second quarter of 2025.
“While still high, this is a significant improvement, showing better fiscal management and increased government revenue,” the NOA explained.
It also revealed that the federal government repaid a $3.26 billion loan obtained from the International Monetary Fund (IMF) within two years and spent around $7 billion on external debt servicing during the first 18 months of the Tinubu presidency.
The agency acknowledged that although Nigeria’s debt level is still considerable, it remains within manageable limits. It said the federal government is working to strengthen its revenue base and reduce reliance on oil earnings by expanding non-oil income sources.
According to the NOA, non-oil revenue increased by 30 percent in the first half of 2024 compared to the same period in 2023. The Nigeria Customs Service also collected ₦1.3 trillion in the first quarter of 2025 — more than double the ₦600 billion collected during the same period in 2023.
“This remarkable increase is a testament to the federal government’s renewed focus on strengthening revenue mobilisation without raising tax rates,” it said.
The NOA further highlighted that Nigeria’s economy is showing steady signs of recovery and diversification, driven by ongoing reforms in agriculture, telecommunications, and the services sector.
It cited a World Bank report projecting Nigeria’s GDP growth at 3.7 percent for 2024 — the strongest expansion in nearly a decade, excluding post-pandemic rebounds.
The agency added that the federal government’s focus on infrastructure investment, agricultural support, digital innovation, and small business development will help sustain the country’s recovery and reduce dependence on oil revenues in the long run.
