Nigeria’s debt servicing obligations have significantly outpaced capital expenditure over the past two years, highlighting growing fiscal pressure on the federal budget.
According to a media brief obtained by The PUNCH from the Federal Ministry of Finance Nigeria, the Federal Government spent ₦27.2 trillion servicing public debt between 2024 and 2025.
The document, prepared by the Special Adviser to the Minister of Finance and Coordinating Minister of the Economy on Media and Communications, Ogho Okiti, revealed that debt servicing exceeded capital expenditure by ₦3.9 trillion within the same period.
According to the report, the rising debt servicing costs were largely driven by macroeconomic adjustments, including the depreciation of the naira and increasing domestic interest rates.
Breakdown of the figures showed that the Federal Government spent ₦12.63 trillion on debt servicing in 2024, far above the ₦8.56 trillion initially budgeted for the year.
In 2025, the cost increased further to ₦14.57 trillion, also exceeding the ₦13.12 trillion allocated in the budget.
The figures highlight the growing pressure debt obligations are placing on Nigeria’s public finances, as analysts warn that rising debt servicing costs could limit government spending on infrastructure and other critical development projects.
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