Nigeria’s debt profile still rising despite subsidy removal, other reforms — CBN Executive
Murtala Sagagi, a member of the monetary policy committee (MPC) of the Central Bank of Nigeria (CBN), says Nigeria’s debt profile continues to rise despite the removal of petrol subsidy and the liberalisation of the foreign exchange (FX) market.
In a communique covering the MPC meeting held from July 21 to 22, released by the CBN on Monday, Sagagi noted that limited economic diversification and overreliance on debt have worsened the economy’s vulnerability to global shocks.
“Since mid-2023, unlocking opportunities for economic diversification and associated welfare improvement has remained the ultimate goal of the current structural reforms,” he said.
“However, even with the removal of fuel subsidy and liberalisation of the exchange rates, the appetite for unfettered spending by the government has grown even stronger.”
According to Sagagi, Nigeria’s total public debt rose from N144.67 trillion as of December 31, 2024, to N149.39 trillion by March 31, 2025. “The country’s debt profile is deteriorating and thus shrinking the fiscal space due to huge debt service costs,” he warned.
Sagagi stressed that “to avoid reversal of the gains so far achieved, ensuring fiscal discipline and deliberate effort to stimulate local productivity and employment are non-negotiable.”
Projecting growth of 3.2 per cent in 2025, one of the highest in the region, he urged policy shifts to restore fiscal space, promote domestic oil refining, and stimulate non-oil exports.
“To fast-track inclusive growth, a policy shift is required to restore fiscal space, exercise more discipline, promote domestic oil refining, and stimulate non-oil production and exports,” Sagagi added.
