Nigeria’s debt service trap
There is no doubt that spending so much on debt servicing will threaten Nigeria’s fiscal stability. With a 60 per cent debt-service-to-revenue ratio and over N15 trillion committed to debt servicing in 2026, representing 53.7 per cent of federal revenue this year, Nigeria is walking a tightrope as public gross debt consumes about 36 per cent of the country’s gross domestic product (GDP). These are signs that Nigeria is not making significant progress in fiscal transparency. The high debt service costs are narrowing and draining fiscal space for critical infrastructure such as healthcare, education and other development priorities.
17th August 2026