Nigeria’s debt could hit N160.6tn by year-end, stockbrokers warn
Nigeria’s overall public debt could reach N160.6 trillion by the end of 2025, which raises new worries regarding the country's fiscal sustainability, as stated in a recent report from CSL Stockbrokers Limited.In its economic outlook for the second half of 2025, the financial services firm—part of FCMB Group Plc—anticipates that the Federal Government may need to borrow at least N9.3 trillion in the later part of the year to address its expanding budget deficit.
If this projection comes to pass, it would elevate Nigeria’s total public debt to about 50.2% of the pre-rebased Gross Domestic Product, underscoring the nation's increasing dependence on debt to support public expenditure.
“We predict that the government will intensify its borrowing in the second half of the year to close the growing fiscal gap,” CSL noted in the report. “We believe the government might approach the market to raise around N9.3 trillion or more, potentially resulting in total public debt reaching at least N160.6 trillion by the end of the year.”
The report also characterized the Federal Government's fiscal situation as precarious, pointing to declines in oil revenue and delays in enacting vital tax reforms.
While the national budget for 2025 aims for a deficit of 3.9% of GDP, CSL estimates that the gap may expand to 5.8%, driven by underachievement in both oil and non-oil revenue streams.
From January to May 2025, Nigeria’s oil output averaged merely 1.67 million barrels per day, significantly under the government’s goal of 2.06 million bpd, which further exacerbates revenue difficulties.
Leave A Comment