DMO Report Projects Tinubu Administration’s Debt Servicing Costs to Exceed ₦91 Trillion by 2028

A report based on data from Nigeria’s Debt Management Office (DMO) projects that the federal government will spend over ₦91 trillion on debt servicing between 2023 and 2028. This staggering figure underscores the escalating fiscal burden of public borrowing as the government struggles with weak revenue generation.

The projection is derived from an analysis of budget provisions and forward estimates in the Medium-Term Expenditure Framework (MTEF) for 2026–2028. Debt service costs have surged sharply since 2023, primarily driven by large fiscal deficits, a rapidly expanding national debt, and high-interest rates. In 2023, the government spent ₦8.56 trillion to service debt, overshooting its budget by nearly ₦2 trillion.

Future projections indicate even heavier burdens, with debt service estimated at ₦15.9 trillion in 2026 and rising to ₦19.8 trillion in both 2027 and 2028. This growth is fueled by an expanding debt stock; domestic debt has risen from ₦54.3 trillion in 2022 to ₦80.5 trillion, while external debt has increased from $41.6 billion to $46.9 billion.

The report warns that Nigeria is becoming locked into a fiscal cycle where debt servicing costs are growing faster than revenues. This unsustainable structure severely limits the government’s capacity to invest in critical areas like infrastructure, healthcare, and education, which are essential for long-term economic growth and productivity.