Nigeria’s total debt service surged to N16.26 trillion in 2025, up from N7.79 trillion in 2023, with the sharpest increases occurring under President Bola Tinubu’s administration.
Quarterly debt service has remained elevated since Q3 2023, peaking at a record N4.86 trillion in Q4 2025, according to Debt Management Office data.
External debt service crossed the trillion-naira range in every quarter except Q4 2023, reaching N2.57 trillion in Q4 2025.
The naira depreciated from N755 per dollar in Q3 2023 to N1,429 per dollar in Q4 2025, amplifying the cost of external repayments.
However, the Q4 2025 spike occurred even as the naira appreciated from N1,478 in the previous quarter, indicating that repayment volumes drove the increase.
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Total federal government revenue stood at N20.98 trillion in 2024, with debt service at N12.74 trillion, implying a debt service-to-revenue ratio of about 61 per cent.
In 2025, annualised revenue is estimated at N23.43 trillion against debt service of N16.26 trillion, meaning the government spent roughly N69 of every N100 earned on debt obligations.
Before Q3 2023, quarterly debt service averaged N753 billion and mostly stayed below N1 trillion.
Since Tinubu took office, quarterly payments have consistently exceeded N2 trillion, rising past N3 trillion and then N4 trillion, marking a structural shift.
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External debt now plays a larger role, accounting for 53 per cent of total debt service in Q4 2025 compared to 43 per cent in Q3 2025.
The rising debt service burden limits the government’s ability to fund infrastructure and other growth-enhancing investments while increasing exposure to global financial conditions.
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