Total Public Debt
The sum of all money owed by the federal government, including both external (foreign) and domestic (local) borrowing.
External Debt
Money borrowed from foreign sources — multilateral institutions (World Bank, IMF), bilateral lenders (China, France), and commercial creditors (Eurobond holders).
Domestic Debt
Money borrowed within Nigeria through instruments like FGN Bonds, Treasury Bills, Sukuk, and the securitized Ways & Means advances from CBN.
External Reserves
Foreign currency holdings maintained by the Central Bank of Nigeria (CBN) to back the naira and pay for imports.
Debt-to-GDP Ratio
Total debt as a percentage of GDP. Nigeria's ~35% is low compared to peers, but the revenue-to-debt ratio is the bigger concern.
Debt Service
Annual payments to service existing debt (principal + interest). Nigeria spends ~64% of revenue on debt service.
Ways & Means
CBN overdraft to the federal government. N22.7T was securitized (converted to bonds) in 2023, instantly adding to official debt.
Paris Club
A group of major creditor countries that coordinates debt relief. Nigeria received $18B relief in 2005-2006 under Obasanjo.
Eurobonds
Dollar-denominated bonds issued in international capital markets. They carry higher interest rates but provide foreign currency.
GDP
Gross Domestic Product — the total value of all goods and services produced in Nigeria in a year.
Inflation Rate
The annual percentage increase in consumer prices (CPI). High inflation erodes purchasing power.
Exchange Rate
The rate at which naira trades against the US dollar. The parallel (black market) rate often diverges significantly from the official CBN rate.
Fuel Subsidy
Government payments to keep petrol prices artificially low. Removed by Tinubu in June 2023, causing prices to triple overnight.
Debt Per Capita
Total public debt divided by population. Each Nigerian notionally carries ~$430 in public debt (2025).
Fiscal Deficit
The gap between government revenue and spending. When spending exceeds revenue, the deficit is financed by borrowing.