Nigeria’s rising debt burden is swallowing government revenue, leaving little room for wages, investment, or economic recovery.
Nigeria’s Federal Government spent almost three-quarters of its total revenue on debt servicing between January and July 2025, underscoring severe fiscal strain. According to the 2026–2028 Medium-Term Expenditure Framework, total revenue for the period stood at N13.67 trillion, while debt service alone consumed N9.81 trillion, or 71.8%.
When personnel costs of N4.51 trillion are added, combined spending on debt servicing and salaries reached N14.32 trillion—exceeding total revenue by about 5%. The shortfall was driven mainly by weak oil earnings, which fell 62% below target, alongside underperforming dividends and customs revenue.
Although Company Income Tax and VAT slightly exceeded expectations, the gains were too small to offset broader revenue losses, leaving a N10.19 trillion revenue gap. Meanwhile, debt servicing overshot budget estimates by 17.5%, crowding out capital spending.
Capital expenditure suffered the most, falling nearly 74% below target, reinforcing concerns that rising debt costs are limiting Nigeria’s ability to fund infrastructure, health, and education.
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