For the first time in over a decade, Nigeria will cut its debt relative to the size of its economy.
The World Bank attributes this milestone to stronger economic growth and a more stable currency.
In its latest Nigeria Development Update, From Policy to People: Bringing the Reform Gains Home, the Washington-based lender projected that the debt-to-GDP ratio will drop from 49.2% in 2024 to 39.8% in 2025.
The report explained that fiscal resilience, stronger growth, and exchange rate appreciation have actively eased debt pressures.
Moreover, debt servicing costs relative to government revenue have fallen to levels that Nigerians have not seen for many years.
Rising Debt Pressures
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Meanwhile, the country’s total public debt surged to ₦149.39 trillion by the first quarter of 2025, increasing by ₦27.72 trillion, largely because a weak naira raised external obligations.
Signs Of Relief
However, stronger economic growth, which reached 4.23% in the second quarter—the highest in five years—along with a stable naira throughout the year, should reduce the nation’s debt burden.
Overall, these developments give Nigerians hope.
After years of heavy borrowing, the country is finally moving toward a more sustainable financial path, signalling a potential turning point for its economy.
