Nigeria’s debt-to-Gross Domestic Product (GDP) ratio has surged to 52.7% as of December 2024, far above the government’s self-imposed ceiling of 40%, according to a new debt management strategy published by the Debt Management Office (DMO) and reviewed by SaharaReporters.

The figure marks a sharp increase from 40.57% in December 2023 to 52.25% by the end of 2024, highlighting the country’s deepening fiscal strain.

Although the ratio surpasses Nigeria’s own target, it remains below the 70% threshold set by the International Monetary Fund (IMF) under its Market-Access Country Debt Sustainability Framework (MAC-DSF), which also serves as the ECOWAS convergence benchmark.

The DMO attributed the spike to higher borrowings, issuance of promissory notes, and the inclusion of N30 trillion in Central Bank of Nigeria’s Ways and Means Advances in the domestic debt stock.

“The increase in Debt-to-GDP from 19% in 2019 to 40.57% in 2023 and 52.25% in 2024 was due to higher levels of new borrowings, issuance of promissory notes, as well as the inclusion of Ways and Means Advances of the CBN in the Federal Government’s domestic debt,” the report stated.

Further analysis of DMO data showed that Nigeria’s total public debt rose to N149.3 trillion as of March 2025, up from N144.6 trillion in December 2024.

  • Domestic debt grew by N4.4 trillion within three months, from N74.3 trillion in December 2024 to N78.7 trillion in March 2025.

  • External debt increased slightly by N350 billion, rising from N70.28 trillion in December 2024 to N70.63 trillion in March 2025.

Nigeria’s debt profile has been on a steep climb over the past year. From N134.2 trillion in June 2024, it rose to N142 trillion in September, N144 trillion in December, and now N149.3 trillion in March 2025.

The figures also show that the Federal Government has continued to rely heavily on domestic borrowing, accounting for the bulk of the country’s loan portfolio