The Nigerian Economic Summit Group (NESG) has warned that Nigeria’s rising debt burden is still putting serious pressure on government finances despite signs of stability in some economic indicators.
In its latest Debt Burden Monitor for the fourth quarter of 2025, the NESG said the country’s fiscal situation remains under strain mainly because a large share of government revenue is still being used to service debt obligations, leaving limited funds available for development projects and other public needs.
The report explained that although Nigeria’s Debt Burden Index (DBI) dropped from 83.6 points in 2023 to 70.9 points in 2024, the improvement did not come from stronger government revenue or major fiscal reforms.
According to the group, the decline was mainly due to a temporary reduction in debt servicing pressure rather than any lasting improvement in the country’s financial strength. NESG stated that liquidity pressure remains the biggest challenge facing the government, noting that debt service-to-revenue ratio continues to drive fiscal stress across the economy.
The group explained that this means a substantial part of government earnings is still going toward repaying loans instead of funding infrastructure, healthcare, education and other critical sectors.
