Since 2010, the Federal Government of Nigeria has spent N45.57 trillion on servicing its debt.

Key takeaways:

  • Debt servicing costs have grown significantly over the years, from ₦400 billion in 2010 to an estimated ₦11.8 trillion in 2024 — a nearly 30-fold increase in just 15 years.
  • Between 2010 and 2024, Nigeria has spent ₦45.57 trillion on servicing its debt, demonstrating the enormity of its financial obligations.
  • The year 2024 stands out as the most expensive year yet, with ₦11.8 trillion spent on debt servicing — a jump of over 37% compared to 2023's ₦8.6 trillion.
  • While debt service expenditures grew gradually in the early 2010s, the most rapid increases occurred after 2019, with spending surging from ₦2.4 trillion in 2019 to ₦8.6 trillion in 2023.
  • From 2019 to 2024, debt servicing costs rose by almost 392%, showcasing how Nigeria’s debt burden has amplified in a short period.
  • This steep rise in debt servicing diverts resources from critical areas such as infrastructure, health, and education, hindering overall development.

There is a striking and consistent increase in Nigeria’s debt servicing costs over the past fifteen years, reaching a cumulative of ₦45.57 trillion between 2010 and 2024. From ₦400 billion in 2010, debt service expenditures have skyrocketed to an estimated ₦11.8 trillion in 2024, demonstrating the heavy burden of rising national debt. In the 2025 federal government proposed budget, N16.33 trillion was allocated to debt servicing. As debt servicing costs increase, the opportunity cost — resources that could otherwise be directed to health care, education, and infrastructure — becomes more evident.

Source:

CBN

Period:

2010-2024
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Lagos State's year-end outstanding foreign debt peaked in 2017, before gradually easing to $1.17 billion as of 2024
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  • The highest year-end debt was recorded in 2017 at $1.47 billion, with a gradual decline afterwards, except for a brief rise again in 2022–2023.
  • By 2024, Lagos State's external debt dipped slightly to $1.17 billion, suggesting some debt service or currency gain effects.
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Nigeria’s outstanding debt to the World Bank has grown nearly 100-fold since 1970, reaching $17.8 billion in 2024
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Key Takeaways:
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