LCCI DG, Chinyere Almona

The Lagos Chamber of Commerce and Industry (LCCI) has raised concerns over Nigeria’s escalating public debt, warning that it reflects increasing fiscal pressure on the economy and calling for more realistic policy measures. Nigeria’s total public debt rose to N159.28 trillion as of December 31, 2025, marking a year-on-year increase of N24.98 trillion, or 18.6 per cent, from N134.30 trillion recorded in 2024. The chamber noted that the continued rise is driven by fresh borrowings to finance fiscal deficits, alongside the impact of exchange rate depreciation on external debt. According to LCCI, the country’s debt-to-GDP ratio increased moderately to about 41.5 per cent in the fourth quarter of 2025, up from 40.87 per cent in the second quarter. While this remains within acceptable thresholds, it said the upward trend highlights mounting fiscal vulnerabilities, particularly as debt-service and debt-to-revenue ratios remain at uncomfortable levels. The chamber also referenced assessments by the World Bank, which attribute Nigeria’s rising debt profile to structural weaknesses in revenue generation and persistent expenditure pressures. Although a potential oil revenue windfall in 2026 could provide some relief, LCCI cautioned that its impact may be limited without disciplined fiscal management, noting that previous oil booms have not consistently translated into long-term fiscal stability.

SUN