Nigeria’s Debt Servicing Hits N8.9tn, Exceeds Budget by 43% – Afrinvest Report
By SpringNewsNG | April 28, 2025
Nigeria’s debt servicing costs soared to N8.9 trillion within the first nine months of http://Nigeria’s debt servicing costs soared to N8.9 trillion within the first nine months of2024, significantly overshooting the pro-rata budget estimate of N6.2 trillion, a new report by Afrinvest has revealed.
The surge is attributed to the country’s ballooning debt stock, which jumped from N97.3 trillion at the end of 2023 to N144.7 trillion in 2024. Debt servicing during the period accounted for 58.3 percent of total government revenue, tightening fiscal space and straining public finances.
Afrinvest warned that the heavy debt servicing burden, alongside recurrent expenditure pressures, is crowding out capital spending—critical for stimulating sustainable economic growth. Despite the 48.7 percent debt increase over the past year, Nigeria’s real GDP growth stood at just 3.4 percent, reflecting the mounting strain on the economy.
“The sharp rise in Nigeria’s debt profile risks undermining growth momentum, especially as much of the borrowed funds are channeled into non-capital projects. In nine months of 2024, Nigeria spent N8.9 trillion on debt servicing against a pro-rata budget of N6.2 trillion, following a debt surge from N97.3 trillion in 2023 to N144.7 trillion in 2024,” Afrinvest stated.
Meanwhile, the International Monetary Fund (IMF) has revised its growth projections downward for Nigeria, citing the escalating debt burden. Analysts warn that key revenue streams, including crude oil exports and taxation, are likely to remain under pressure for the rest of 2025 due to external shocks and domestic challenges such as widespread insecurity, rampant oil theft, corruption, and fiscal mismanagement.
Additionally, The PUNCH reported that Nigeria’s external debt service obligations are expected to climb to $5.2 billion this year, reflecting rising pressure on public finances despite the government’s ongoing economic reforms, according to Fitch Ratings.
