Speaking on Channels Television on Sunday, Ogunsanwo emphasized that the crucial conversation for Nigerians and the Debt Management Office (DMO) should shift from merely discussing the cost of debt to scrutinizing the results derived from the N149.39 trillion debt accumulated over the years. He warned that "nothing really weakens the government as much as the poor use of debt."
The Burden of Domestic Borrowing
A major point of concern highlighted by Ogunsanwo is the alarming growth in domestic borrowing, which has reportedly increased by a staggering N50 trillion in the last two years under the current administration.
"The challenge we have is that we are focused on the cost of debt without really matching it to what we are getting in return from this debt," Ogunsanwo stated. "Whenever we see the Debt Management Office talking about debt service, we have to elevate our discussion to include what the returns and results on this debt are — the tangible or intangible returns." He reiterated, "The real headache is domestic borrowing; the Federal Government under Tinubu has acquired 50 trillion in two years."
A Closer Look at the Figures
Ogunsanwo's comments come on the heels of the DMO's recent release of Nigeria's Q1 2025 debt figures. The data shows a total public debt of N149.39 trillion, representing a quarter-on-quarter increase of N4.72 trillion, or 3.3 percent, from N144.67 trillion as of December 31, 2024.
A more detailed breakdown reveals concerning trends:
- Domestic debt surged by 203 percent to N74.8 trillion in Q1 2025 from N23.7 trillion in the same quarter of 2023.
- Foreign debt saw an 11 percent increase, rising to $41 billion in Q1 2025 from $37 billion in Q1 2023.
These figures underscore the rapid accumulation of debt, particularly from domestic sources, prompting analysts like Ogunsanwo to demand greater transparency and accountability regarding how these funds are being utilized and what economic benefits they are yielding for the nation.