The Federal Government of Nigeria spent a total of ₦12.36 trillion on debt servicing in 2024, marking a 52.7% increase above the initially approved allocation of ₦8.27 trillion, according to the Budget Office’s Fourth Quarter Report.
The expenditure accounted for 35.26% of the total ₦35.05 trillion national budget, underscoring the growing pressure of debt obligations on the country’s fiscal sustainability.
The report also revealed that Nigeria’s total public debt-to-GDP ratio climbed to 61.22% by the end of 2024 — a figure that exceeds both domestic and international prudential limits. This rise reflects the combined impact of increased borrowing and a weakening revenue base.
According to the Budget Office, the Federal Government recorded a fiscal deficit of ₦13.51 trillion during the year, driven primarily by higher debt service costs, elevated recurrent expenditure, and underperformance in oil revenue.
Analysts say the figures highlight Nigeria’s deepening fiscal challenges, as debt servicing continues to consume a significant portion of national resources, leaving limited fiscal space for infrastructure and social investments.
Nigeria’s growing debt burden has been a key concern for policymakers and economists, who warn that without stronger revenue mobilization and better expenditure management, the country risks facing mounting fiscal vulnerabilities in the years ahead.
