Data from the Open Treasury Portal reveals that the Nigerian government spent a total of N8.1 trillion on debt servicing in 2024.
Breaking down the figures, N5.299 trillion went toward servicing internal public debt from January to December 2024, while N2.747 trillion was allocated to servicing external public debt.
Thus, a combined total of N8.046 trillion was spent on both internal and external debt servicing throughout the year, according to the government’s Open Treasury Portal.
When compared to other sectors, the expenditure on public services is strikingly lower per “state house headquarters expenditure” analysis.
For instance, the allocation for the construction of electricity infrastructure under the “State House Headquarters” was just N74.3 billion.
Similarly, spending on water facilities amounted to N31.8 billion, while investments in hospitals and health centres totalled N40.2 billion.
The rehabilitation of public schools received N13.4 billion—each of these figures significantly less than the N8.046 trillion spent on debt servicing.
The expenditure on road repairs and rehabilitation was recorded at N384.485 billion, far below the debt servicing budget.
Earlier, newsmen reported that data from the Debt Management Office (DMO) showed the administration of President Tinubu allocated N3.5 trillion for debt servicing between July and September 2024.
Additionally, according to the DMO, the exchange rate used for calculating the country’s public debt as of September 2024 was N1,601 per dollar.
This means that N2.1 trillion ($1.338 billion multiplied by N1,601) was spent on external debt servicing during the third quarter.
Nigeria’s external loans have come from institutions such as the African Development Bank, the Africa Growing Together Fund, the International Fund for Agricultural Development, and the Islamic Development Fund, among others.
Despite facing serious developmental challenges, including limited access to clean water, education, and healthcare, Nigeria continues to funnel large sums into debt servicing. Many have criticised the government for diverting funds that could have been used to address these pressing issues to debt servicing.
Though Nigeria has frequently pledged to reduce its dependence on debt, the country continues to borrow heavily to cover its budget deficit, leading to a growing debt servicing burden.
