A member of the Central Bank of Nigeria’s Monetary Policy Committee (MPC), Murtala Sabo Sagagi, has raised concerns over the country’s worsening debt position, despite the removal of fuel subsidies and the liberalization of the foreign exchange market—two major reforms intended to improve fiscal stability.
In his personal statement made after the 301st MPC meeting published on the CBN website on Sunday, Sagagi stated that the government has continued a path of “unfettered spending,” even as economic pressures mount.
“Even with the removal of fuel subsidy and liberalization of the exchange rates, the appetite for unfettered spending by the government has grown even stronger,” the MPC member said.
Latest figures from the Debt Management Office (DMO) show that Nigeria’s total public debt rose from N144.67 trillion as of December 31, 2024, to N149.39 trillion as of March 31, 2025. This represents a jump of over N4.7 trillion in just three months.
In his assessment, Sagagi noted that the exchange rate will likely hit N1400/$1 by December 2025.
According to him, “the recent increase in daily crude oil production, new inflows of capital and improved balance of payment, the naira is likely to keep appreciating to reach the projected N1400/US$1 before the end of the year.”
In his earlier projection after the 300th MPC, he projected the Naira to appreciate to N1,450/$1 by the end of the year.
Sagagi stated, “The value of the naira has been relatively stable even though it is still considered undervalued. It is projected that the naira would appreciate to N1,450 per US dollar by the end of 2025.”
Naijaonpoint reports that the Naira closed at N1,503.5/$1 in the official market on Friday.
Another MPC member, Lamido Abubakar Yuguda, in his personal assessment, stated that the apex bank must continue in its path of monetary tightening.
He stated, “MPC should sustain its focus on fighting inflation by maintaining the current tight monetary policy stance until inflation declines to a more reasonable level.”
He noted that rebased GDP data from the National Bureau of Statistics (NBS) indicated output growth of 3.38 percent in 2024. Similarly, the composite Purchasing Managers’ Index (PMI) rose to 52.3 in June 2025, up from 52.1 in May, with agriculture, industry, and services all recording increased activity.
“This is further evidence that despite the tight monetary conditions, the Nigerian economy is growing modestly, and domestic investment is responding positively to the increasing certainty engendered by a declining inflation rate and a more stable exchange rate,” he noted.
In its H2 2025 economic outlook report released by CSL Stockbrokers Limited, a subsidiary of FCMB Group Plc, stated that Nigeria’s total public debt could rise to N160.6 trillion by the end of 2025, raising new concerns about the country’s deepening fiscal vulnerabilities.
According to the report, the Federal Government may borrow an additional N9.3 trillion or more in the second half of the year to cover its widening fiscal deficit, potentially pushing the country’s public debt stock to around 50.2% of the pre-rebased Gross Domestic Product (GDP).
President Bola Tinubu, in December 2024, stated that the Federal Government aims to stabilise the exchange rate at N1,500 to the dollar by the end of 2025 to ensure the smooth implementation of the budget.
President Bola Tinubu, in December 2024, stated that the Federal Government aims to stabilise the exchange rate at N1,500 to the dollar by the end of 2025 to ensure the smooth implementation of the budget.