Dr. Marcel Mbamalu, the publisher of Prime Business Africa, raises doubts in a position piece about whether this decline is a true indication of better debt management and financial restraint or if it is a cover for more serious problems.
The Debt Management Office reports that between December 2024 and March 2025, Nigeria’s promissory note debt decreased 15.6% on a quarterly basis. The DMO stated that the recent Federal Government’s efforts to settle verified obligations and boost confidence among important economic stakeholders were the reason for the decline, which went from N1.542 trillion to N1.301 trillion.
A promissory note, according to Investopedia, is a written commitment made by one party (the note’s maker or issuer) to pay another party (the note’s payee) a specific amount of money, either immediately upon demand or at a predetermined future date. The principle debt amount, interest rate, maturity date, payment schedule, date and location of issuance, and issuer’s signature are all commonly included in promissory notes.
“Is this decline a true indication of better debt management and budgetary restraint, or does it conceal more serious problems like the postponement or cancellation of important capital projects?” In his position article, Mbamalu poses the question.
He continued by raising concerns about the methods used to reduce the debt, underscoring the necessity of openness in debt management.
The decrease in promissory note debt coincides with the depreciation of the naira, increased interest costs, and the country’s ongoing reliance on borrowing, which have caused Nigeria’s overall public debt to reach almost N149 trillion.
“Nigeria’s long-term development and the welfare of its citizens cannot and should not be sacrificed for fiscal health. Mbamalu advised the government to strike a compromise between the pressing need to deliver vital capital projects that propel national development and the need of debt control.
He continued by urging strict parliamentary monitoring and an independent audit to confirm the veracity and sustainability of the stated debt reduction.
