In the first half of 2024, Nigeria’s payments for debt servicing increased by 69%, reaching N6.04 trillion, up from N3.58 trillion in the same period of 2023.
The Central Bank of Nigeria’s (CBN) recent statistical bulletin shows that debt servicing expenses made up 50% of the government’s total spending of N12.17 trillion and 162% of the N3.73 trillion total revenue earned during that time.
This sharp increase in debt servicing costs has raised concerns about Nigeria’s growing financial risk.
CBN data shows that monthly debt servicing costs increased significantly, with particularly high amounts in January (N755.9 billion), March (N1.01 trillion), May (N2.26 trillion), and June (N689 billion).
Experts warn that Nigeria’s debt servicing costs could keep rising and might reach 100% of its revenue by 2026.
