As Nigeria navigates growing fiscal pressures and uncertainty in the global economy, the International Monetary Fund (IMF) has recommended the country to prioritize debt sustainability above deciding between domestic and foreign borrowing.
Speaking at a press conference on the IMF’s April 2026 Regional Economic Outlook for Sub-Saharan Africa, Abebe Aemro Selassie emphasized that whether Nigeria’s debt stays within sustainable and manageable bounds is more important than the source of borrowing.He contends that the nation’s capacity to fulfill its obligations without imposing an excessive burden on public finances should serve as the basis for decisions on borrowing, whether it be domestic or foreign. He pointed out that it is considerably more important to maintain a balance between debt levels and repayment capacity than to favor one borrowing option over another. Maintaining a manageable debt load in relation to debt service capabilities is crucial, according to Selassie.
Concern over Nigeria’s increasing debt profile has grown. As of December 31, 2025, the nation’s total public debt had increased to N159.28 trillion, according to data from the Debt Management Office (DMO).
As the government continues to fund infrastructure demands and budget shortfalls, domestic borrowing has been a major factor in this increase.
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