Worrisome Loans and High Cost of Debt Servicing in Nigeria
It is worrisome that President Tinubu is taking more loans despite Nigeria's problems with the increasingly high cost of debt servicing.
Debt servicing is taking more than 27 percent of Nigeria’s 2025 budget. The country's debt is approximately $100 billion, with $45.9 billion in external debt and $51.2 billion in domestic debt.
The budget for debt servicing exceeds the combined budget of education, health, and defence in the 2025 budget.
President Tinubu is paying more attention to obtaining more loans and less attention to the economic consequences of the high cost of debt servicing in Nigeria.
Since assuming office in May 2023, President Bola Ahmed Tinubu has overseen an aggressive borrowing campaign, securing $29 billion in just two years.
Author's summary: Nigeria's debt servicing costs are alarming.