Tinubu Administration's Borrowing Spree Raises Alarm as Debt Burden Surpasses 55-Year Record

The Chairman of the Alliance for Economic Research and Ethics LTD/GTE, Dele Oye, has expressed concern over the rapid increase in Nigeria's public debt under President Bola Tinubu's administration. According to Oye, the N65.9 trillion borrowed by the government in the last 24 months is more than five times the total debt accumulated by the country in its first 55 years of independence. This development has led to a significant rise in the country's debt profile, with the total public debt now standing at N159.28 trillion as of April 2026, according to the Debt Management Office. As a result, every Nigerian now owes N670,000, Oye lamented. He noted that successive governments had accumulated debt over the years, but the Tinubu administration has added a substantial amount in a short period. Oye cautioned that unless urgent measures are taken to strengthen revenue generation and fiscal discipline, the rising debt burden could have long-term implications for public finances and constrain government spending on critical sectors. He recalled that in 2006, President Olusegun Obasanjo paid $12 billion to settle $30 billion in Paris Club debt, making Nigeria briefly externally debt-free. However, under President Goodluck Jonathan, the debt increased to N12.06 trillion by 2015. The debt further exploded during the Buhari administration, rising from N12.06 trillion to N87.38 trillion in eight years, a 620 per cent increase. Oye stated that the Central Bank of Nigeria was forced to print money through 'Ways and Means' advances, which were later securitised into long-term bonds, effectively converting a government overdraft into a generational liability. He also noted that while governments often quote the debt-to-GDP ratio, the more critical number is the debt service-to-revenue ratio, which shows how much of every naira earned goes towards paying creditors. Nigeria's debt service-to-revenue ratio stood at 116.8 per cent in 2024 and eased slightly to 113 per cent in Q1 2025, according to the Nigerian Economic Summit Group. In January 2025, the Federal Government paid out N696.27 billion in debt service, against total retained revenue of just N483.47 billion. Oye emphasized that Nigeria has the potential to overcome its challenges, but it lacks the political will to deploy its tools and talent. He prescribed digitizing tax collection, broadening the tax base, enforcing the Fiscal Responsibility Act, restructuring Eurobond maturities, and empowering states to generate their own revenue.