Nigeria is facing intense scrutiny over its mounting debt, with public outcry growing over the affordability of further borrowing. In May 2026, the World Bank experienced significant backlash on social media following reports of a fresh $1.25 billion loan request by the Tinubu administration, leading to the suspension of comment sections due to the volume of public reaction.

The core of the debate centers on whether Nigeria's current fiscal path can sustain additional borrowing. Data from the Debt Management Office reveals a dramatic increase in Nigeria’s total public debt, escalating from approximately N49.85 trillion in early 2023 to over N159 trillion by December 2025.

While the nation's debt-to-GDP ratio is projected to remain within a moderate range of 32% to 35% in 2026, falling below the International Monetary Fund's (IMF) high-risk threshold, the critical concern lies in the Debt Service-to-Revenue Ratio. This metric indicates the proportion of national income required to service existing debts.

The 2026 Federal budget outlines N15.9 trillion for debt service against a projected revenue of N33.39 trillion, translating to a debt-to-GDP ratio of 48%. However, recent performance suggests this projection may be overly optimistic.

A report from Businessday NG highlighted that debt servicing consumed a substantial 64.5% of Nigeria’s total federal revenue in 2023. This figure underscores the vulnerability of the projected 48% Debt Service to Revenue ratio for 2026, especially given recent weak revenue generation trends.