NOA Says Nigeria’s Debt Burden Declining Under Tinubu, Cites Improved Fiscal Management and Revenue Growth

The National Orientation Agency (NOA) has said that Nigeria’s debt burden has “significantly decreased” since President Bola Tinubu assumed office in 2023, refuting reports suggesting the opposite.

This comes despite data from the Debt Management Office (DMO) indicating that the country’s total public debt rose to ₦152.40 trillion as of June 30, 2025—an increase of ₦3.01 trillion from ₦149.39 trillion in March 2025, representing a 2.01 percent rise within three months. In dollar terms, the debt stock grew by 2.49 percent to $99.66 billion.

In a statement released via its official X handle on Monday, the NOA explained that misinformation had fueled a distorted perception of Nigeria’s debt profile. Citing data from the DMO, Central Bank of Nigeria, Ministry of Finance, and Federal Inland Revenue Service, the agency noted that Nigeria’s total public debt stood at $113.42 billion as of June 2023, with a debt-to-GDP ratio below 40 percent—well within the sustainability limits set by the IMF and World Bank.

According to the NOA, the figure dropped to about $94.22 billion by December 2024, showing a reduction of over $19 billion within 18 months. The agency said this decline reflects deliberate efforts by the Tinubu administration to manage borrowings prudently, make down payments on existing loans, and avoid unnecessary new debts—demonstrating fiscal discipline.

The agency also highlighted significant progress in debt servicing efficiency. It recalled that before Tinubu’s administration, debt repayments consumed almost all government revenue, with 97 percent of total revenue spent on servicing debts in the first half of 2023. However, by the end of 2024, this ratio fell to 68 percent and dropped further to below 50 percent by the second quarter of 2025, signalling improved fiscal management and revenue performance.

Underscoring the administration’s commitment to financial responsibility, the NOA revealed that the federal government repaid a $3.26 billion IMF loan within two years and spent about $7 billion on external debt servicing during the first 18 months of Tinubu’s presidency.

While acknowledging that Nigeria’s debt remains within sustainable limits, the agency said the economy still faces challenges tied to its dependence on oil revenues. Nonetheless, it commended the government’s intensified drive to diversify income sources through enhanced tax collection, reduction of leakages, and promotion of non-oil revenue growth.

The NOA noted that non-oil revenue grew by 30 percent in the first half of 2024 compared to the same period in 2023. The Nigeria Customs Service, it added, collected ₦1.3 trillion in the first quarter of 2025—more than double the ₦600 billion recorded in the same period in 2023—reflecting stronger revenue mobilisation without tax hikes.

According to the agency, the economy is showing steady recovery and diversification, supported by reforms in agriculture, telecommunications, and services. It referenced a World Bank projection that Nigeria’s GDP would expand by 3.7 percent in 2024—the country’s strongest growth in nearly a decade outside post-pandemic rebounds.

The NOA added that the federal government’s continued investment in infrastructure, agricultural support, digital innovation, and small business development is aimed at sustaining economic growth and reducing the nation’s reliance on oil revenues.