The federal government has spent a whopping N8.94 trillion on debt servicing in the first nine months of 2024, representing a significant 47% of total expenditure during this period.
The figure marks a sharp 56.8% increase compared to N5.69 trillion spent in the same period in 2023, according to data from the Central Bank of Nigeria’s (CBN) quarterly statistical bulletin.
The growing debt servicing costs highlight the mounting burden of Nigeria’s debt obligations, compounded by widening fiscal deficits.
The country’s debt-to-revenue ratio has worsened considerably, with debt servicing consuming 147% of retained revenue in 2024, a sharp rise from the 132% ratio in 2023.
During this period, the government generated N6.08 trillion in revenue, but debt servicing costs have outpaced this figure, highlighting the increasing reliance on borrowing not only for day-to-day operations but also to manage existing debt.
Recurrent expenditure, which covers government operational costs, surged to N15.11 trillion in the first nine months of 2024, a 45.6% increase from N10.38 trillion in the same period of 2023. Key areas of recurrent spending saw significant hikes.
