Amanze Chinonye
Nigeria’s debt servicing burden has expanded dramatically over the past four years, rising from ₦3.76 trillion in 2022 to a proposed ₦15.91 trillion in 2026, more than four times the 2022 figure, Prime Business Africa reports.
Data cited by Statisense from BudgIT’s 2026 budget analysis show a consistent and sharp upward climb in annual debt repayment obligations. In 2022, the Federal Government allocated ₦3.76 trillion to service its debts. By 2023, that figure had surged to ₦6.86 trillion, marking an increase of over ₦3 trillion in just one year.
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The pressure intensified in 2024, when debt servicing more than doubled again to ₦12.36 trillion. The figure rose further to ₦13.43 trillion in 2025, and is projected to hit ₦15.91 trillion in the 2026 budget proposal now before lawmakers.
In practical terms, Nigeria’s annual debt service bill has grown by over ₦12 trillion within four years an expansion that underscores the mounting strain on public finances.
What was once a multi-trillion-naira obligation in the lower single digits has now climbed close to ₦16 trillion, consuming an increasingly larger portion of federal resources.
Fiscal analysts warn that as debt servicing rises, it competes directly with spending on infrastructure, healthcare, education, and other critical sectors. With more revenue committed to repaying existing loans, the government faces tighter fiscal space to fund development priorities without resorting to further borrowing.
The proposed ₦15.91 trillion allocation for 2026 signals that debt obligations will remain a dominant feature of Nigeria’s fiscal structure.
As lawmakers review the budget framework, attention is expected to focus on revenue performance, borrowing plans, and the long-term sustainability of the country’s debt trajectory.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
