Nigeria's debt profile has surged to N166.79 trillion, prompting serious concerns from economists and financial experts. This alarming increase comes as the country plans to secure an additional $1.5 billion loan from the World Bank, raising questions about the sustainability of its borrowing practices.

According to data released by the Debt Management Office (DMO), the national debt has skyrocketed by 90.9 percent since President Bola Tinubu took office, rising from N79.39 trillion in May 2023 to its current figure as of June 2026. This translates to an average debt of N716,822 per Nigerian, marking an 87 percent increase from N383,442 three years ago.

The breakdown of the debt reveals that Nigeria's external debt has increased by 28.4 percent to $54.52 billion, while domestic debt has surged by 55 percent to N91.59 trillion. This rapid accumulation of debt has drawn criticism from various quarters, including opposition leaders and civil society organizations.

Former Vice President Atiku Abubakar has voiced concerns over the government's borrowing strategy, urging the Tinubu administration to clarify the implications of the mounting debt burden before pursuing further loans. Similarly, ActionAid Nigeria has raised alarms over the rising debt-servicing costs, which stood at N2.14 trillion in the second quarter of 2026, down from N3.14 trillion earlier.

Economists like Professor Godwin Oyedokun from Lead City University emphasize the need for greater scrutiny of Nigeria's borrowing practices. He argues that any new loans should be evaluated based on their intended use, repayment terms, and potential to foster economic growth. "The proposed additional $1.5 billion should be assessed against its purpose, cost, repayment terms and, most importantly, whether it will finance productive investments that generate jobs, revenue and economic growth rather than recurrent expenditure," Oyedokun stated.

He further highlighted the importance of ensuring that borrowed funds are used effectively to yield tangible economic outcomes. Oyedokun warned that unchecked borrowing could strain Nigeria's fiscal capacity, limiting resources available for critical sectors like education, healthcare, and infrastructure.

Gbolade Idakolo, an economist and CEO of SD & D Capital Management, echoed these concerns, noting that the high cost of debt servicing has not translated into visible benefits for ordinary Nigerians. He criticized the DMO for failing to manage the country's debt structure effectively, raising the risk of insolvency in the face of economic shocks.

Idakolo stressed the urgent need for Nigeria to curb its borrowing appetite to avoid compromising the future of younger generations. He argued that the government must ensure that borrowing for infrastructure leads to real benefits for citizens, rather than merely increasing the debt burden.

As Nigeria grapples with its rising debt profile, the call for a clear debt-to-development strategy becomes increasingly urgent. Experts agree that every significant borrowing should be linked to measurable economic objectives and accompanied by transparent monitoring to ensure accountability and effectiveness in the use of funds.