The Bola Tinubu-led government is said to spend more than N91 trillion on debt servicing between 2023 and 2028, highlighting the growing cost of public borrowing amid persistently weak revenue performance.
The estimate is based on a review of debt service provisions in the 2023 and 2024 budgets, the 2025 Appropriation Act, and forward projections contained in the Medium-Term Expenditure Framework (MTEF) for 2026-2028.
Debt service obligations have risen sharply since 2023, driven by widening fiscal deficits, a rapidly expanding debt stock, and elevated interest rates.
In 2023, the government budgeted N6.56 rillion for debt service but ended the year having spent N8.56 trillion, overshooting the target by about N2 trillion.
Looking ahead, the MTEF projects debt service of N15.9 trillion in 2026, rising to N19.8 trillion in both 2027 and 2028.
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Beyond revenue shortfalls, debt servicing costs are being amplified by a rapidly expanding debt stock and high interest rates.
Domestic debt has grown from N54.3 trillion in 2022 to N80.5 trillion, reflecting increased reliance on local borrowing, while external debt has risen from $41.6 billion to $46.9 billion.
Overall, Nigeria appears increasingly locked into a fiscal structure where debt service grows faster than revenue, limiting the government’s ability to invest in infrastructure, healthcare, education, and other productivity-enhancing sectors.
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