Nigeria's debt-to-GDP falls to 32.3% in 2026 as actual debt hits N159.27tn
Nigeria's debt-to-gross domestic product ratio improved to 32.3 percent in 2026 from 35.5 percent in 2025, according to IMF data released Wednesday at the World Bank Spring Meetings. However, the country's total public debt actually increased to N159.27 trillion by end-2025, up N5.98 trillion from the previous quarter.
The IMF warned that fiscal constraints in low-income economies like Nigeria could force governments to cut spending on essential services such as health, education, and social protection, potentially worsening poverty. This comes despite the improved debt ratio, which fell partly due to GDP growth outpacing debt accumulation.
Meanwhile, the House of Representatives approved President Tinubu's $6 billion external borrowing request on March 31, clearing the way for financing from UAE and UK lenders. The Debt Management Office confirmed the debt increase shows Nigeria borrowed N14.6 trillion more than in Q4 2024.
Given the improved debt ratio alongside rising actual debt and warnings about potential service cuts, what does this mean for Nigerians' access to health and education services? Will the fiscal improvement translate to protected budgets, or should citizens monitor for possible austerity measures despite the headline numbers?