Financial experts are raising concerns that Nigeria could be entering a full-blown debt trap, where the government is forced to take on new loans just to service existing obligations.
There are also growing fears of sovereign default, the possibility that Nigeria might struggle to meet its debt obligations.
Nigeria’s fiscal position has deteriorated significantly over the past decade, with public debt rising by more than 1,000% in naira terms, driven largely by currency devaluation and persistent fiscal deficits.