Nigeria's debt interest payments exceed health/education spending, N16T spent in 2025
Nigeria spent approximately N16 trillion servicing its public debt in 2025, a 22.9% increase from N13.02 trillion in 2024, according to Debt Management Office data analyzed by Nairametrics. Between June 2023 and December 2025, the country incurred N10.61 trillion in additional debt-service costs—more than double the N6.47 trillion allocated to strategic infrastructure development during the same period.
This trend reflects a broader regional pattern where interest payments exceed government spending on health and/or education in nearly four-fifths of sub-Saharan African countries, as highlighted in the World Bank's October 2026 Africa Economic Report. The report shows debt servicing averaged 2.9%-3.2% of regional GDP between 2023-2026, constraining budgets for essential services.
Domestically, Nigeria's debt burden is particularly acute: N3.14 trillion was spent servicing domestic debt in Q1 2026 alone, up 20.3% from the corresponding period in 2025. The African Development Bank identifies Nigeria as one of two West African economies (alongside Ghana) where external debt-interest payments rival or exceed public health spending as a share of GDP.
With debt-service costs absorbing larger shares of public revenue, the World Bank warns this "crowds out productive expenditure" that could slow capital accumulation, weaken productivity growth, and hinder poverty reduction. As exchange-rate depreciation and higher domestic interest rates drive these costs, what impact will rising debt servicing have on healthcare access, school quality, or infrastructure maintenance in your community?