A group of contractors under the aegis of Concerned Local Contractors have staged a peaceful protest in Abuja where they are accusing the federal government of failure to settle outstanding payments for projects they executed since the beginning of the year, ABUJAPRESS reports.
Their protest holds amidst reports that Nigeria’s total public debt rose to N149.39 trillion as of March 31, 2025, marking a year-on-year increase of N27.72 trillion or 22.8% when compared to the N121.67 trillion recorded in the corresponding period of 2024.
The latest figures from the Debt Management Office (DMO) also indicate a quarter-on-quarter increase of N4.72 trillion or 3.3% from N144.67 trillion as of December 31, 2024.
The contractors, who protested at the headquarters of the federal ministry of finance in Abuja on Monday, expressed frustration over the government’s prolonged indebtedness, which they said is inflicting severe economic hardship on them and their families.
They carried placards bearing various inscriptions, including “We delivered our projects, now pay us money”, “central payment system by OAGF and FMF has failed woefully. Revert back to the former system” and others claimed that delays in payment could force contractors into desperation, given the country’s current security and economic challenges.
The contractors allege that none of their members has been paid since January 2025 till date, a situation they said has brought about hardship to them.
They further alleged that payment selections in Office of Accountant General (OAGF) makes it even worse, urging that Ministry of Finance should be allowed to process payment.
The spokesperson for the aggrieved contractors appealed to President Bola Tinubu to intervene and ensure that the contractors are paid without further delay.
He claimed that 2025 budget implementation stands at just 35% as contractors are yet to be paid after delivering their jobs.
This consistent upward trajectory in Nigeria’s debt stock reflects both fresh borrowings and the impact of a depreciating exchange rate on external debt obligations.
The surge comes amid ongoing fiscal pressures, rising revenue, and continued dependence on both local and foreign borrowing to fund the national budget.
External debt climbs to N70.63 trillion, largely on currency effects
Nigeria’s external debt as of March 31, 2025, stood at N70.63 trillion ($45.98 billion), a significant jump from N56.02 trillion ($42.12 billion) in the same period in 2024.
This represents a year-on-year increase of N14.61 trillion or 26.1%. In quarter-on-quarter terms, external debt rose modestly from N70.29 trillion in December 2024 — a marginal increase of N344 billion or 0.5%.
However, while the dollar-denominated debt rose by $3.86 billion year-on-year, the much steeper increase in naira terms highlights the underlying impact of foreign exchange depreciation on Nigeria’s external liabilities.
The Central Bank of Nigeria (CBN)’s official exchange rate used for converting debt in Q1 2024 was N1,330.26 per US dollar.
Although the specific rate for Q1 2025 was not disclosed, the growing gap in naira terms points to a weakened exchange rate, which directly amplifies Nigeria’s repayment obligations on its dollar and euro-denominated loans.
External debt obligations include borrowings from multilateral institutions such as the World Bank and the African Development Bank, bilateral sources, and commercial creditors, including Eurobond investors.
The burden of servicing these debts in naira terms has become heavier as the local currency continues to slide in value, a trend that could deepen if reforms aimed at stabilising the currency do not yield results.
The domestic component of Nigeria’s debt also maintained an upward trend, reaching N78.76 trillion ($51.26 billion) at the end of March 2025.
This reflects a year-on-year increase of N13.11 trillion or 20% from N65.65 trillion ($49.35 billion) in March 2024. On a quarterly basis, domestic debt rose by N4.38 trillion or 5.9%, up from N74.38 trillion in December 2024.
The Federal Government alone accounted for N74.89 trillion of this total, while the 36 states and the Federal Capital Territory (FCT) jointly held N3.87 trillion.
Interestingly, state-level domestic debt declined slightly from N3.97 trillion in Q4 2024 and from N4.07 trillion in Q1 2024. This may suggest more prudent borrowing by subnational governments or better debt service performance in the period under review.
Domestic borrowing typically consists of government securities such as Treasury Bills, FGN Bonds, Sukuk, and Green Bonds. These instruments are used to plug the country’s fiscal deficit and are generally seen as safer from exchange rate risk, although they come with their own interest cost burdens.
As of the first quarter of 2025, the composition of the total public debt showed a near-even split, with domestic debt accounting for 52.7% and external debt making up 47.3%. This represents a slight shift from the structure recorded in March 2024, when domestic debt had a higher share of 54% while external debt stood at 46%.
The rising share of external debt — especially in naira terms — underlines the currency risk that Nigeria faces with continued reliance on foreign borrowing. At the same time, the consistent increase in domestic debt signals the government’s efforts to raise funds from the local capital market, despite concerns about high debt servicing costs and crowding out of private investment.
