January 12, (THEWILL) — Nigeria’s debt servicing obligations are projected to exceed ₦91 trillion by 2028, underscoring the growing fiscal pressure facing the federal government under President Bola Tinubu’s administration.
Data from budget documents and fiscal projections show that between 2023 and the first seven months of 2026, Nigeria will have spent an estimated ₦41 trillion servicing public debt. This includes ₦7.8 trillion in 2023, ₦8.25 trillion in 2024, ₦11.45 trillion budgeted for 2025, and about ₦13.5 trillion projected for the first seven months of 2026, reflecting rising interest costs and increased borrowing.
Looking ahead, debt servicing is expected to accelerate sharply. Projections indicate that annual debt service could rise to ₦15.6 trillion in 2026, ₦17.8 trillion in 2027, and over ₦18 trillion in 2028, pushing cumulative debt service under the Tinubu administration beyond ₦91 trillion by the end of the decade.
The surge is driven by a combination of factors, including higher domestic borrowing at elevated interest rates, increased reliance on Treasury bills and bonds, exchange-rate depreciation impacting foreign debt repayments, and widening fiscal deficits.
While authorities argue that borrowing remains necessary to fund infrastructure, social programmes and economic reforms, analysts warn that the growing debt service burden could crowd out spending on critical sectors such as health, education and capital investment.
Nigeria already spends a significant share of government revenue on servicing debt, raising concerns about fiscal sustainability and revenue adequacy. Experts stress that improving revenue mobilisation, deepening tax reforms, and moderating borrowing costs will be critical to preventing debt service from overwhelming public finances.
As debt obligations rise, the effectiveness of ongoing fiscal reforms will play a decisive role in determining whether Nigeria can sustain growth without sliding into deeper debt stress.
Ogochukwu Onwaeze
