Financial expert, Paul Alaje, has warned that Nigeria’s rising debt profile will not only affect current citizens but will also place a heavy burden on future generations.

Reacting to the country’s latest debt figures, Alaje explained that the growing debt stock directly translates into higher servicing costs, which are ultimately funded through taxes and public revenue.

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According to him, the ₦159 trillion debt figure released by the Debt Management Office (DMO) represents the total loans accumulated by both the federal and sub-national governments, with no forgiveness or cancellation in sight.

He noted that as the debt increases, the cost of servicing it also rises, putting additional pressure on the economy. Alaje further cautioned that with new borrowings already approved and more expected, Nigeria’s debt could surpass $160 billion by the first quarter of 2026.

Recent data from the DMO shows that Nigeria’s total public debt stood at ₦159.28 trillion as of December 31, 2025. This marks an increase of ₦5.98 trillion (3.9%) from ₦153.29 trillion recorded in September 2025, and a year-on-year rise of ₦14.61 trillion (10.1%) from ₦144.67 trillion in December 2024.

In dollar terms, the country’s debt grew from $103.94 billion in September 2025 to $110.97 billion in December 2025.

With Nigeria’s estimated population of about 220 million, the debt translates to roughly ₦724,000 per citizen. However, this figure excludes a newly approved ₦8.3 trillion borrowing from the United Arab Emirates and UK Export Finance, suggesting the total could increase further.

A breakdown shows that domestic debt accounts for the largest share at 53.27%, rising to ₦84.85 trillion in December 2025. Of this, the Federal Government holds ₦80.49 trillion, while states and the Federal Capital Territory account for ₦4.36 trillion.

External debt stands at ₦74.43 trillion, representing 46.73% of the total. In dollar terms, this amounts to $51.86 billion, with the Federal Government accounting for ₦66.27 trillion and states and the FCT responsible for ₦8.16 trillion.