NESG warns Nigeria's debt hits 40.6% amid borrowing concerns

Nigerian Economic Summit Group (NESG) warns Nigeria faces persistent fiscal risks as public debt-to-GDP ratio climbed to 40.6%, according to the group's latest economic review released Monday in Abuja.

Although below some international thresholds, the growing cost of servicing Nigeria's debt continues to pose a major threat to economic stability. NESG's warning comes amid the country's increasing dependence on borrowing amid weak revenue generation, which could worsen pressure on public finances without urgent reforms.

The economic think group stressed that 'Nigeria's debt sustainability concerns remain elevated due to weak revenue performance and rising debt servicing obligations,' urging fiscal authorities to prioritize revenue expansion and prudent spending. NESG specifically called for boosting non-oil revenue, improving tax administration, and encouraging private sector investment to reduce reliance on borrowing.

Persistent inflation, exchange rate volatility, and low productivity growth could compound these challenges if not properly managed. Consistent implementation of fiscal and monetary policies will be critical to restoring investor confidence and achieving long-term growth.

How will this debt situation impact your business decisions, investments, or personal financial planning in the coming months?

SOURCE: https://dailypost.ng/2026/05/12/nesg-warns-of-persistent-debt-risk-as-public-debt-to-gdp-hits-40-6/