By Atoyebi Nike
Nigeria’s public debt is nearing unsustainable levels, capital market experts warned at the CMAN Q4 2025 Virtual Symposium on November 15.
Despite official debt-to-GDP figures appearing stable, panellists including Dr. Tope Fasua, Prof. Bright Eregha, and Dr. Musa Baba cautioned that rising debt servicing costs, weak revenues, and structural inefficiencies are straining the nation’s finances. The experts said Nigeria’s true liabilities may be understated, with extra-budgetary commitments and unreported obligations posing long-term risks.
Prof. Wilfred Iyiegbunwe likened the situation to the pre-2005 period before Paris Club debt relief, urging evidence-based planning and strict implementation of the Medium-Term Debt Strategy to manage refinancing risks and interest-rate exposure. Analysts stressed borrowing should fund projects with measurable economic returns, not recurrent expenditure, and called for a rebalanced domestic–external debt mix to reduce currency risks.
The forum highlighted Nigeria’s low tax revenue, around 10 percent of GDP, as a critical constraint. While initiatives such as the Revenue Assurance and Optimisation Programme are positive, experts said improved transparency, compliance, and public trust are essential to expand fiscal space.
Participants also advocated for greater use of Public-Private Partnerships, Sukuk, and Green Bonds, along with rigorous cost-benefit assessments before new borrowing. They emphasized better monitoring of debt-funded projects, stronger fiscal discipline, and a unified national debt register covering all tiers of government.
Prof. Maryam Abdul concluded that without accelerated institutional reforms and enhanced revenue mobilization, Nigeria risks repeating past debt crises, endangering fiscal stability and investor confidence.
