The Business NG - BusinessNg

In this issue

Editorial Focus: Nigeria’s Rising Debt Burden and the Cost of Fiscal Drift Nigeria is approaching a critical fiscal inflection point as projections indicate that over ₦91 trillion could be spent on debt servicing by 2028. This trajectory raises serious questions about the sustainability of public finances and the opportunity cost for growth-enhancing investments. Debt service is expanding faster than government revenue, steadily crowding out spending on infrastructure, healthcare, education, and productivity-driven reforms. Under President Bola Ahmed Tinubu’s administration, debt servicing costs have consistently overshot budget estimates, reflecting deeper structural weaknesses—poor revenue mobilisation, widening fiscal deficits, and exposure to high interest rates. Borrowing itself is not the problem; rather, it is the growing mismatch between debt accumulation and the economy’s capacity to generate income to service it. Without decisive reforms to boost revenue, rationalise spending, and improve debt efficiency, Nigeria risks locking itself into a cycle where fiscal resources are devoted more to servicing the past than investing in the future. The coming years will test the government’s resolve to restore balance and credibility to public finance management.