LCCI Raises Fresh Concern Over N159.28trn National Debt, Calls For Reforms

The Lagos Chamber of Commerce and Industry (LCCI) has expressed concern over Nigeria’s rising public debt, warning that the country’s debt burden is increasingly undermining capital expenditure needed to address critical infrastructure deficits.

LCCI president, Engr. Leye Kupoluyi, expressed this concern while speaking at the Chamber’s Second Quarter (Q2) 2026 State of the Economy briefing in Lagos on Wednesday.

He stated that Nigeria’s total public debt rose to N159.28 trillion as of December 2025, stressing that the growing cost of servicing the debt now poses a significant threat to infrastructure development and sustainable economic growth.

According to him, while Nigeria’s debt-to-GDP ratio remains within internationally acceptable thresholds, the country’s weak non-oil revenue base and escalating debt-servicing obligations continue to put immense pressure on public finances.

He disclosed that total public debt increased by N24.98 trillion, representing an 18.6 per cent year-on-year rise from N134.30 trillion recorded in December 2024. On a quarter-on-quarter basis, the debt stock also grew by N6.88 trillion, or 4.5 per cent, from N152.40 trillion in September 2025.

Kupoluyi explained that external debt stood at N74.43 trillion ($51.86 billion), accounting for 46.7 per cent of the total debt portfolio, while domestic debt reached N84.85 trillion ($59.12 billion), representing 53.3 per cent, indicating the government’s continued dependence on the domestic debt market for financing.

“Nigeria’s public debt-to-GDP ratio is estimated at 41.5 per cent in Q4 2025. Although this remains within moderate thresholds, rising debt-servicing obligations and weak non-oil revenue continue to exert pressure on public finances,” he said.

He warned that the growing debt-servicing bill was crowding out capital expenditure, thereby limiting the government’s ability to invest in roads, power, healthcare, education and other infrastructure critical to economic development.

The LCCI president, however, noted that improved crude oil prices and increased production in 2026 present an opportunity for the government to strengthen its fiscal position through higher oil revenues.

He urged the Federal Government to channel the expected oil revenue windfall towards reducing public debt, rebuilding fiscal buffers and financing critical infrastructure projects instead of increasing recurrent expenditure.

“The anticipated windfall should be used prudently to reduce debt, rebuild fiscal buffers and finance critical infrastructure rather than expand recurrent expenditure,” he advised.

Assessing the country’s budget performance, Kupoluyi criticised the extension of the implementation of the 2025 capital budget into June 2026, saying it raises concerns about fiscal discipline, budget credibility and the efficiency of Nigeria’s budget cycle.

He observed that several projects captured in previous budgets remain either uncompleted or have not commenced, despite repeated budgetary allocations.

To improve public financial management, the Chamber called for comprehensive reforms in budget preparation, implementation, monitoring and evaluation.

According to him, the government should establish measurable Key Performance Indicators (KPIs), strengthen project monitoring mechanisms, improve transparency and accountability in public spending, and ensure that budgetary allocations translate into visible improvements in infrastructure, service delivery, employment generation and citizens’ welfare.

Kupoluyi also advocated accelerated non-oil revenue mobilisation, stronger tax administration and greater fiscal discipline as essential measures for ensuring long-term debt sustainability.

The Chamber welcomed the World Bank’s approval of a $1.25 billion Development Policy Financing loan under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme, noting that the facility is expected to support reforms in the capital market, digital economy, power sector, trade facilitation, agriculture and domestic revenue mobilisation.

The LCCI president further warned that prevailing global uncertainties, including the ongoing Middle East conflict and tighter international financial conditions, require Nigeria to maintain prudent fiscal and monetary policies to safeguard macroeconomic stability and sustain investor confidence.

Kupoluyi also advised against the return of untargeted subsidies and price controls, arguing that such policies distort market signals, increase fiscal costs and discourage energy efficiency.