The cost of servicing Nigeria’s foreign debt has surged by 107.7% to reach N3.8 trillion, significantly exceeding the projections outlined in the 2024 budget between January and August.
This is contained in the 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy (MTEF & FSP) published by the Budget Office and obtained by Nairametrics.
The 2024 budget initially projected foreign debt servicing costs at N1.83 trillion, but actual spending surged to N3.8 trillion within the same period, resulting in an increase of N1.97 trillion, according to the report.
- In contrast, domestic debt servicing only slightly exceeded expectations, surpassing projections by 2%. The budget allocated N3.53 trillion for domestic debt servicing, while actual spending amounted to N3.6 trillion, reflecting a modest difference of N71 billion.
- Additionally, the total amount budgeted for debt servicing during the period—including domestic debt, foreign debt, sinking funds, and interest on FGN bonds for…