Nigeria’s Presidency has addressed concerns about the country’s rising international debts, stating that the current administration has actually eased debt by 39% since taking office in 2023. According to Special Assistant to the Presidency on Economy, Tope Fasua, Nigeria’s debt-to-GDP ratio stands at 39%, which he claims is a sign of “under-borrowing.” Fasua explained that the country’s debt management has improved significantly, with debt servicing costs 64% lower than in 2022.

In an interview on Channels Television’s “The Morning Brief,” Fasua acknowledged that Nigeria’s external debt has increased, but attributed this to necessary borrowings to address the country’s significant infrastructural gap. As of Q1 2025, Nigeria’s external debt stood at approximately $45.97 billion, representing a 26.07% year-on-year increase from Q1 2024. This increase is largely due to new government loans and the depreciation of the naira, according to data from the Debt Management Office and the National Bureau of Statistics.

Fasua emphasized that the government welcomes constructive criticism and is committed to effective debt management. He noted that in 2022, debt servicing costs were extremely high, with the government using all its revenues to service debts and borrowing an additional 20% to cover these costs. In contrast, the current administration has made significant strides in reducing debt servicing costs, despite the overall increase in external debt.

The Nigerian government’s approach to debt management is likely to be subject to ongoing scrutiny, given the country’s significant economic challenges. As the government continues to navigate its debt obligations, it will be important to monitor the impact of its borrowing strategies on the overall economy. With a large infrastructural gap to address, the government must balance its need for borrowing with the need for prudent debt management and fiscal responsibility.