The Nigerian government has reaffirmed its dedication to fulfilling its debt obligations, both domestic and foreign, in 2025. This assurance comes amidst rising concerns over the country’s growing debt servicing commitments.

Key Highlights

• Debt Management: The Debt Management Office (DMO) emphasized that adequate provisions have been made in the N47.9 trillion 2025 Appropriation Bill to cover debts owed to various entities, including China, France, the World Bank, and the International Monetary Fund (IMF).

• Budget Overview: The 2025 budget, presented by President Bola Tinubu, projects revenue of N34.82 trillion and a deficit of N13.0 trillion, which will be financed through new borrowing. A total of N15.81 trillion has been allocated for debt servicing.

Reassurance from the DMO

The DMO assured Nigerians that the country’s debt management strategies align with legal provisions and international standards. It highlighted Nigeria’s successful $2.2 billion Eurobond issuance in November 2024, which attracted over $9 billion in subscriptions from investors across various regions, including the UK, North America, and Asia.

Economic Implications

The DMO cited increased interest in FGN bonds, Sukuk bonds, and other securities as evidence of investor confidence in Nigeria’s macroeconomic policies and fiscal discipline. It also pointed out that the Eurobond issuance has created opportunities for Nigerian banks and corporations to access international capital markets.

Legislative Progress

The budget is currently under review by appropriation committees in the National Assembly. Once finalized, it will be passed and signed into law by President Tinubu.

Despite concerns over Nigeria’s rising debt profile, the government remains committed to maintaining fiscal discipline and meeting its financial obligations. The 2025 budget reflects a strategic approach to managing debt while fostering investor confidence and exploring new opportunities for economic growth.

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