Nigeria’s total public debt stock rose to ₦149.39 trillion as of March 31, 2025, representing a year-on-year increase of ₦27.72 trillion or 22.8 percent when compared to ₦121.67 trillion in the corresponding period of 2024, according to the Debt Management Office (DMO).
The figure also reflects a quarter-on-quarter rise of ₦4.72 trillion or 3.3 percent from ₦144.67 trillion recorded at the end of December 2024.
Against this backdrop, the Director-General of the DMO, Patience Oniha, has advised state governments to prioritise tax revenue generation and adopt Public-Private Partnerships (PPPs) as alternatives to excessive borrowing for infrastructure financing.
She made this call on Tuesday at a one-day workshop in Lagos, organised under the States Action on Business Enabling Reforms Programme with support from the World Bank.
“Borrowing should not be the major way to source funds. You must increase your revenues by increasing your tax revenues. PPPs can help improve Nigeria’s economy by attracting private sector investment and expertise to develop infrastructure and deliver public services. This reduces the financial burden on government, accelerates project delivery, and often results in higher quality outcomes,” she said.
The DMO chief stressed that efficient tax administration and compliance would increase internally generated revenue without raising rates, while reducing leakages and corruption.
She added that PPPs would deliver jobs, stimulate local businesses, and support innovation.
Oniha also cautioned against poor debt management at state level, stressing the need for prudent utilisation of loans and strict adherence to borrowing regulations.
“This nation has gone through a debt crisis before. Everything necessary must be done to avoid a repeat. Ghana, Argentina, Zambia, and Sri Lanka are recent examples of countries in distress. Nigeria must not return to that path,” she warned.
Meanwhile, the Lagos State Commissioner of Finance, Abayomi Oluyomi, disclosed that the state is working on securitising some of its assets, including liquid and non-depreciable assets, to strengthen its fiscal position.
He explained that naira depreciation had significantly raised the state’s external debt stock without new loan commitments, rising from an exchange rate of about ₦400/$1 in the past administration to over ₦1,600/$1 under current conditions.
Oluyomi added that Lagos State would no longer contract foreign loans except for concessional facilities with repayment terms exceeding 20 years.
The DMO reiterated its commitment to work with both federal and state governments to ensure debt sustainability, stressing that Nigeria is viewed as a single economy by global rating agencies and creditors.
With public debt already at ₦149.39 trillion, fiscal experts argue that revenue reforms, disciplined borrowing, and private sector partnerships will determine Nigeria’s ability to maintain macroeconomic stability and avoid debt distress.