Nigeria’s debt‑servicing bill rose by 14.68 % in 2022, reaching N3.36 trillion, according to data from the Debt Management Office (DMO). In 2021, the country spent N2.93 trillion on external and domestic debt servicing. The DMO previously reported that Nigeria’s total debt stock stood at N46.25 trillion as of December 2022. An analysis of the DMO figures shows that the nation spent $2.4 billion—equivalent to N1.07 trillion at the current $/N 460 exchange rate—to service its external debt last year. Domestic debt servicing accounted for N2.56 trillion in 2022, with the highest monthly expenditure of N529.88 billion recorded in April.
Debt servicing under President Major General Muhammadu Buhari (retd.) has followed an upward trend since 2016. Domestic debt payments were N1.23 trillion in 2016, rising to N1.48 trillion in 2017, N1.8 trillion in 2018, and then slightly decreasing to N1.69 trillion in 2019. The figure climbed again to N1.85 trillion in 2020 and reached N2.05 trillion in 2021. External debt servicing was $353.09 million in 2016, $464.05 million in 2017, and jumped to $1.47 billion in 2018. It fell to $1.33 billion in 2019, rose to $1.56 billion in 2020, and amounted to N2.93 trillion in 2021. These amounts were calculated using the Central Bank of Nigeria’s annual average exchange rates: N197 (2016), N305 (2017‑2018), N360 (2019), N380 (2020), and N420 (2021).
The Lagos Chamber of Commerce and Industry expressed concern over the country’s mounting debt burden, citing stagnant revenue growth, deteriorating infrastructure, and the unsustainable oil‑subsidy overhang. In a statement, the chamber warned that the debt‑service‑to‑government‑revenue ratio—around 90 %—remains alarming and unsustainable. It highlighted that both capital and interest payments on borrowed sums expose fiscal vulnerabilities and urged the government to prioritize revenue‑growth strategies while curbing leakages. The chamber also recommended shifting focus to equity financing, divesting or shedding equity holdings in state‑owned enterprises, real estate, and infrastructure to reduce debt commitments and improve fiscal health.
The International Monetary Fund has warned that, without adequate measures to boost revenue generation, debt servicing could consume 100 % of the Federal Government’s revenue by 2026.
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