Nigeria has spent a total of $15.55 billion on debt servicing between 2019 and 2024, according to data from the Central Bank of Nigeria.
The country’s debt servicing payments have increased significantly over the years, with a 270.9% rise between 2019 and 2024.
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Despite the government’s claims of shifting focus to domestic borrowing, external debt servicing is expected to escalate by $400 million to $5.2 billion next year, raising concerns about Nigeria’s debt sustainability.
The Federal Government received $2.25 billion from the World Bank to support economic reforms, but plans to take on additional external debt, including N1.8 trillion in commercial borrowing and N1.1 trillion in concessional loans.
This has raised concerns about the country’s ability to manage its debt burden.
The Minister of Finance, Mr. Wale Edun, stated that the government has implemented reforms to restore macroeconomic stability and promote sustainable economic growth.
However, the increasing debt servicing payments and plans to take on more debt have raised concerns about Nigeria’s economic future.
