Nigeria’s Debt Servicing Outweighs Five Sector Budgets

Nigeria's debt servicing costs have surpassed the combined budgets of five major sectors by N3.16tn. The Federal Government allocated N15.8tn to debt servicing in its 2026 budget, which is N3.16tn more than the total allocations for agriculture, health, works, defence, and education.

According to an October 2026 assessment by CFG Advisory, the rising burden of debt obligations is significantly impacting public finances. The report highlights how debt servicing is becoming a dominant factor in government spending priorities.

The welfare cost of debt servicing extends beyond mere financial payments to creditors. It also involves the development opportunities lost due to competing public expenditure demands that leave critical areas underfunded.