Nigeria Under Tinubu Spends N2.6trillion, $1.3billion On Debt Servicing In Three Months | Sahara Reporters
Earlier, between January and December 2024, the country spent N5.8 trillion on domestic debt servicing, while external debt servicing consumed $4.6 billion in the same period.
A review of data from the Debt Management Office (DMO) on Nigeria's debt servicing shows that the country spent N2.6 trillion and $1.3 billion on domestic and external debt servicing, respectively, between January and March 2025.
Earlier, between January and December 2024, the country spent N5.8 trillion on domestic debt servicing, while external debt servicing consumed $4.6 billion in the same period.
SaharaReporters reported that, in his speech marking two years in office, President Bola Tinubu listed his administration’s "successes."
One of the claims he highlighted was that the debt service-to-revenue ratio had dropped from 100% in 2022 to 40% in 2024 under his administration.
SaharaReporters subjected the President's claim—that debt service-to-revenue dropped from 100% in 2022 to 40% in 2024—to verification using Central Bank of Nigeria (CBN) economic reports, which are published quarterly and monthly.
"Our debt position is improving. While foreign exchange revaluation pushed our debt-to-GDP ratio to around 53%, our debt service-to-revenue ratio dropped from nearly 100% in 2022 to under 40% by 2024," the President, Tinubu had said.
Data, however, tells a different story.
According to the CBN economic report, retained revenue by the Nigerian federal government as of the fourth quarter of 2024 stood at N2.519 trillion. However, debt servicing in the same period stood at N2.199 trillion.
A further review revealed that in the third quarter of 2024, retained revenue stood at N2.282 trillion, while debt servicing amounted to N2.055 trillion.
The data also shows that in the second quarter of 2024, retained revenue was N2.408 trillion, while debt servicing cost N3.772 trillion.
In the first quarter of 2024, retained revenue was N1.445 trillion, while debt servicing stood at N1.691 trillion, according to the same CBN economic report.
In total, the retained revenue by the Tinubu-led Nigerian federal government in 2024 was N8.654 trillion, while debt servicing costs amounted to N9.717 trillion.
By implication, the debt service-to-revenue ratio stood at 112%—significantly higher than the 40% claimed by the Tinubu-led administration in its public statements.
There have been growing concerns about the rising burden of Nigeria's debt servicing, with stakeholders lamenting how it deprives the country of the resources needed for development.
