Nigeria’s debt-to-GDP seen falling to 39.8%, first time in more than a decade
Nigeria’s share of debt as a percentage of its gross domestic product (GDP) is expected to drop in 2025, the first time in more than a decade, helped by stronger growth and a more stable exchange, according to the World Bank.
“The debt-to-GDP ratio is projected to decline from 49.2 percent in 2024 to 39.8 percent in 2025, the first decline in more than a decade; and the debt service to revenue dropped significantly to levels not seen in many years,” the Washington-based lender said in its Nigeria Development Update report, ‘From Policy to People: Bringing the Reform Gains Home’, Wednesday.
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“Fiscal resilience, stronger growth, and exchange rate appreciation have helped ease debt pressures.”
Nigeria’s total public debt surged by N27.72 trillion to N149.39 trillion as at first quarter of 2025, largely due to a weak naira that’s continued to balloon the country’s external obligations.
But a stronger growth that rose to its highest in five years in the second quarter to 4.23 percent and a naira that’s been stable all through the year is expected to reduce debt burden.
