Nigeria spent a total of N13.12tn on debt servicing in 2024, representing a 68 per cent increase from the N7.8tn recorded in the previous year, according to an analysis of fresh data from the Debt Management Office.
The PUNCH observed that the debt servicing costs recorded in 2024 surpassed the budgeted allocation of N12.3 tn for the year.
The higher-than-expected expenditure highlights the increasing pressure of debt obligations on the nation’s fiscal sustainability.
For the 2025 budget, the Federal Government has earmarked N16.tn for debt servicing, reflecting the government’s anticipation of continued debt-related expenses.
This development comes amid rising borrowing costs and an increasing debt burden, putting pressure on the country’s fiscal position.
The PUNCH learnt that the domestic debt service cost for 2024 stood at N5.97 tn, reflecting a 14.15 per cent rise from the N5.23 tn recorded in 2023.
The significant increase is attributed to higher interest rates and increased domestic borrowing. On the external front, Nigeria spent $4.66bn (equivalent of N7.15tn at an exchange rate of N1,535.32/$1), marking a sharp increase of 167 per cent from N2.57tn recorded in 2023.
