KEY POINTS
- Nigeria does not rank among the world’s top indebted nations by debt-to-GDP ratio.
- IIF data recorded Nigeria among countries with the largest debt ratio increases in 2024.
- Nigeria’s debt-to-GDP ratio climbed to 52.1% in 2024, approaching the IMF’s 55% threshold.
Senator Jimoh Ibrahim says Nigeria’s absence from global rankings of the world’s most indebted nations is proof that President Bola Tinubu’s economic policies are working. The data backing that claim, however, comes with important caveats.
Ibrahim, who represents Ondo South and is also an ambassador-designate, made the assertion in a statement Wednesday, pointing to Q4 2025 data from the Institute of International Finance analyzed by Visual Capitalist. That data shows several advanced economies carrying combined debt burdens, covering government, corporate and household obligations, exceeding 300 percent of GDP. Hong Kong leads at 380 percent, followed by Japan at 372 percent, Singapore at 347 percent, France at 326 percent and Canada at 315 percent. Nigeria does not appear on that list.
“Those who expected reckless borrowing have been proven wrong,” Ibrahim said. “Nigeria is not on the list of the world’s most indebted countries. This further reflects deliberate fiscal coordination and structured economic reforms.”
The Nuance in the Numbers concerning Nigeria global debt ranking
While Ibrahim’s reading of the headline rankings is technically accurate, a closer look at the same IIF data raises questions. The institute’s December 2024 Global Debt Monitor specifically named Nigeria among the countries that recorded the largest increases in total debt ratios during the first three quarters of 2024, driven largely by government borrowing.
Furthermore, Nigeria’s debt to GDP ratio climbed to roughly 52.9 percent in 2024, up sharply from 41.5 percent in 2023. That trajectory puts it closer to the IMF’s 55 percent debt sustainability threshold, a benchmark that economists use to flag elevated risk.
What Ibrahim Says Comes Next
Despite those concerns, Ibrahim maintained that Nigeria’s borrowing remains within manageable limits and that ongoing structural reforms, including fuel subsidy removal and exchange rate unification, are reducing long-term fiscal vulnerabilities.
“While Nigeria may not rank among the most indebted countries globally, the sustainability of its debt remains closely tied to revenue generation and debt servicing capacity,” he acknowledged, adding that improving non-oil revenues and boosting exports will be critical to holding that position.
Finally, Nigeria’s total public debt stood at approximately N149.39 trillion as of March 2025. Ibrahim described the administration’s trajectory as evidence that what he called “Bolaeconometrics” is beginning to yield measurable results, even as domestic debate over the country’s borrowing strategy continues.
