DMO warns Nigeria’s debt burden could swallow 97% of revenue by 2030

Nigeria could spend 71.7 per cent of federal revenue servicing debt by 2030, exceeding the Debt Management Office’s 50 per cent threshold, while an adverse economic scenario could push the figure to 97.3 per cent.

Nigeria may spend nearly three-quarters of federal revenue servicing debt by 2030, raising concerns over funding for infrastructure, healthcare and other essential services.

According to The Sun, the Debt Management Office (DMO) disclosed this in its 2024 Debt Sustainability Analysis report released on Monday.

The report projected that debt servicing would consume 71.7 per cent of government revenue by 2030, exceeding the recommended 50 per cent threshold.

The ratio stood at 60.6 per cent in 2024 and is projected to reach 51 per cent in 2026 and 57.1 per cent in 2027.

Under a worse economic scenario involving naira depreciation and declining revenue, debt servicing could rise to 97.3 per cent by 2030.

The DMO attributed the pressure to debt servicing costs growing faster than government revenue.

However, Nigeria’s public debt-to-GDP ratio is projected to decline from 53.7 per cent in 2024 to 27.3 per cent by 2030.

The projections highlight mounting fiscal pressures on government spending.