By Ayo Kehinde
Nigeria’s debt service obligations have risen sharply, climbing to N16.26 trillion in 2025 from N7.79 trillion in 2023, with the most significant increases occurring since the current administration assumed office in Q3 2023.
Data from the Debt Management Office shows that quarterly debt payments have remained consistently elevated, peaking at a record N4.86 trillion in Q4 2025.
Before Q3 2023, quarterly debt service ranged between N330.82 billion and N1.24 trillion, averaging N753.05 billion. External debt servicing was relatively modest at about N203.41 billion per quarter.
However, since then, quarterly obligations have surged to between N2.46 trillion and N4.86 trillion, with an average of N3.47 trillion. External debt payments have exceeded N1 trillion in nearly every quarter, reaching N2.57 trillion in Q4 2025.
This sharp shift began in Q3 2023, when external debt service jumped by over 270 percent quarter-on-quarter, pushing total debt service up by 234.78 percent. Since then, payments have consistently remained above N2 trillion.
The rising burden is straining public finances. In 2024, debt service consumed about 60.73 percent of federal revenue and 36.94 percent of total expenditure.
By 2025, this pressure intensified, with an estimated 69.41 w of government revenue going toward debt servicing.
The growing dominance of external debt, combined with exchange rate pressures, has heightened fiscal risks.
Overall, the trend signals a structural increase in Nigeria’s debt service burden, limiting the government’s capacity to fund critical development projects.
