Nigeria is on course to spend over ₦91 trillion on debt servicing between 2023 and 2028, highlighting the rising cost of public borrowing under President Bola Tinubu amid weak revenue growth.
Based on budget data and projections in the Medium-Term Expenditure Framework (2026–2028), debt service has consistently exceeded estimates. Spending rose from ₦8.56 trillion in 2023 (against a ₦6.56 trillion budget) to ₦12.63 trillion in 2024, far above the ₦8.27 trillion provision. For 2025, ₦14.32 trillion was budgeted, but ₦9.8 trillion had already been spent in the first seven months.
Looking ahead, debt service is projected at ₦15.9 trillion in 2026 and ₦19.8 trillion annually in 2027 and 2028. While total budgeted debt service stands at ₦84.6 trillion, repeated overshoots suggest the final figure could exceed ₦91 trillion.
Rising debt costs are crowding out capital spending, which has lagged behind debt service each year, and are being driven by weak revenues, expanding domestic and external debt, and high interest rates above 20 per cent.
Unless revenues improve or borrowing costs fall, debt service will remain the dominant pressure on public finances, limiting investment in infrastructure and social services.
