Nigeria overspent by ₦4 trillion on debt servicing in 2024, pushing its debt-to-GDP ratio beyond safe limits.
The Federal Government spent ₦12.36 trillion on debt servicing in 2024, exceeding the budgeted ₦8.27 trillion by 52.71 per cent, according to the Fourth Quarter 2024 Budget Implementation Report released by the Budget Office of the Federation.
The report revealed that debt servicing accounted for 35.26 per cent of the ₦35.05 trillion national budget and contributed to a fiscal deficit of ₦13.51 trillion — 47.33 per cent higher than projected.
It showed that the deficit was financed through domestic borrowing (₦6.06 trillion), foreign loans (₦3.37 trillion), project-tied loans (₦1.98 trillion), and budget support (₦3.19 trillion). Nigeria’s total debt-to-GDP ratio stood at 61.22 per cent, surpassing both local and international thresholds.
Despite total revenue rising to ₦20.98 trillion, government expenditure reached ₦34.49 trillion, with ₦5.81 trillion released for capital projects, of which ₦3.27 trillion was utilized.
The report attributed the fiscal strain to declining oil prices, modest oil production, and rising global economic pressures.