The Nigerian government has admitted that the country’s growing debt burden is severely hampering its ability to invest in essential sectors such as healthcare, education, and infrastructure. In its Medium-Term Expenditure Framework (MTEF) for 2025-2027, the government revealed that debt servicing consumed ₦8.56 trillion in 2023. This figure accounted for 37% of federal expenditure and 69% of total revenues, leaving little room for critical developmental investments.
Since the start of President Bola Tinubu’s administration, Nigeria’s public debt has risen sharply, increasing from ₦87.3 trillion to ₦134.2 trillion by June 2024. The World Bank recently approved a $500 million loan for Nigeria, marking the tenth such loan under Tinubu’s leadership. However, this has added to the nation’s growing debt crisis.
Projections suggest that Nigeria will spend over ₦50 trillion on debt servicing between 2025 and 2027, further straining public finances. Despite these challenges, the government has taken steps to ease the fiscal pressure. Notably, ₦4.5 trillion in Central Bank of Nigeria Ways and Means advances has been repaid to reduce the debt burden and improve fiscal sustainability.
The rising debt levels remain a significant obstacle to economic stability and development. Critics warn that Nigeria faces a delicate balance between meeting its debt obligations and addressing urgent developmental needs. The administration is under pressure to adopt policies that can restore growth while minimizing the impact of the debt crisis on Nigerians’ living standards.
Analysts say that while recent reforms aim to address economic challenges, the debt crisis underscores the urgent need for fiscal discipline and strategic investment to ensure long-term economic sustainability.
