When FX Blew Up Nigeria’s Debt Numbers

The phrase “when FX blew up Nigeria’s debt numbers” refers to the sharp depreciation of the Nigerian naira in early 2022‑2023, which caused the country’s external debt burden to appear much larger in local‑currency terms. As the naira fell against the dollar, the value of Nigeria’s dollar‑denominated loans and bonds rose dramatically when converted back to naira, pushing the official debt‑to‑GDP ratio from about 30 % to over 40 % and prompting a reassessment of fiscal sustainability, higher borrowing costs, and stricter IMF‑style reforms. The FX shock highlighted how exchange‑rate volatility can distort debt statistics and affect debt‑service capacity. Views Nigeria