Nigeria – The United Nations Conference on Trade and Development (UNCTAD) has raised concerns over the increasing debt burdens faced by developing nations, warning that many are struggling under financial pressure. According to the agency, by 2023, external debt for developing countries had reached $11.4 trillion, nearly equaling their total export earnings.
Nigeria’s debt is projected to surpass ₦155 trillion in 2025, as the government plans to borrow an additional ₦13 trillion to cover the 2025 budget deficit. As of September 30, 2024, the country’s debt stood at ₦142.3 trillion, with a revenue-to-debt servicing ratio of 65%.
UNCTAD highlighted that instead of funding critical sectors such as infrastructure, education, and healthcare, governments are forced to make tough financial decisions due to debt obligations. It revealed that around 3.3 billion people worldwide reside in countries that allocate more funds to debt repayment than to health or education.
During the 14th International Debt Management Conference in Geneva, UNCTAD Secretary-General Rebeca Grynspan called for urgent reforms to prevent the debt crisis from hindering economic progress. She stressed that countries should prioritize development rather than defaulting on their commitments.
The upcoming 4th International Conference on Financing for Development is expected to focus on strategies to reduce debt distress while promoting sustainable growth. UNCTAD emphasized the need for global cooperation and innovative financial solutions to break the cycle of unsustainable debt and support economic resilience.
Nigeria has been making efforts to address its debt challenges. In the past, the country spent up to 97% of its revenue on debt servicing, hampering economic development. However, under the current administration, the debt-service-to-revenue ratio has been reduced to 65%. Additionally, the Central Bank of Nigeria (CBN) reported a significant drop in the country’s debt service payments, from $540 million in January 2025 to $276 million in February 2025.
These improvements result from ongoing government efforts to restructure debt, boost foreign exchange liquidity, and stabilize the economy.
By Damilola Adeleke | March 22, 2025
Adeleke Damilola (ACTION) is a versatile content writer with expertise in news writing and a seasoned media professional and broadcast specialist. Currently serving as News Editor for DNews Info, Damilola is also the CEO of the ACTION brand, committed to shaping lives and establishing a legacy of excellence for present and future generations.
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