Nigeria’s public debt has risen to 40.6 percent of gross domestic product, prompting the Nigerian Economic Summit Group (NESG) to warn that the country faces persistent fiscal risks unless revenue generation and spending are re‑balanced.
The NESG released its latest economic review in Abuja, noting that while the debt‑to‑GDP ratio remains below some international thresholds, the cost of servicing the debt is accelerating and could threaten macro‑economic stability. The group attributes the mounting debt burden to a growing reliance on borrowing in an environment of weak domestic revenue collection.
“Debt‑sustainability concerns remain elevated because of fragile revenue performance and rising debt‑service obligations,” the NESG said. It called on fiscal authorities to expand the revenue base, tighten expenditure, and pursue reforms that will diversify income away from oil.
Key recommendations include intensifying efforts to boost non‑oil revenue, improving tax administration, and creating an enabling environment for private‑sector investment. The group stresses that without these measures, continued borrowing could exacerbate fiscal pressure and limit the government’s capacity to finance critical public services.
The NESG also highlighted broader macro‑economic challenges that could compound the debt issue. Persistent inflation, volatility in the foreign‑exchange market and sluggish productivity growth were identified as risks that, if left unchecked, may undermine confidence among investors and hinder long‑term growth prospects.
According to the review, consistent implementation of both fiscal and monetary policies is essential to restoring investor confidence and achieving sustainable growth. The group urged the federal government to maintain a coordinated policy stance, emphasizing that credible fiscal discipline and prudent debt management are critical to safeguarding the nation’s economic outlook.
As Nigeria navigates a period of heightened fiscal vulnerability, the NESG’s alert underscores the need for swift policy action to strengthen revenue mobilisation, curb unnecessary borrowing, and address structural impediments to growth. The organization will continue to monitor debt dynamics and provide policy guidance as the situation evolves.
