By Muhammad Mamman
Nigeria’s soaring public debt, estimated at N152 trillion, has been largely driven by foreign exchange rate adjustments and ongoing economic reforms rather than new borrowing, the Minister of Finance and Coordinating Minister of the Economy has said.
Speaking on the country’s fiscal position, the minister explained that recent reforms in the foreign exchange market had significantly revalued Nigeria’s external debt when converted into naira, sharply inflating headline debt figures.
According to the minister, the unification and adjustment of exchange rates were necessary steps to stabilise the economy, improve transparency and restore investor confidence, even though they have had short-term effects on debt statistics.
“What Nigerians are seeing is largely an accounting effect,” the minister said, noting that obligations previously recorded at lower exchange rates are now being reflected at market-determined levels.
He stressed that the government has prioritised fiscal discipline, revenue mobilisation and debt sustainability, adding that borrowing is increasingly being channelled into critical infrastructure and growth-enhancing sectors.
The minister also said the administration is working to broaden the tax base, plug revenue leakages and reduce dependence on borrowing, while protecting vulnerable citizens from the impact of economic adjustments.
Nigeria, Africa’s largest economy, has faced mounting pressure from rising debt servicing costs, currency depreciation and inflation, prompting renewed debate over the pace and social cost of recent reforms.
The government, however, maintains that the measures are essential to place the economy on a more sustainable footing in the long term.
