Huge Debts to Restrict Tinubu Government’s Ability To Fund Vital Projects in Nigeria
The Tinubu administration has conceded in its medium term expenditure framework that the country’s public debt sustainability is a major concern, as high debt servicing costs and limited fiscal space are restricting its ability to invest in key areas such as healthcare, education, and infrastructure the MTEF document by the Tinubu government reads.
Total debt service cost in 2023 was N8.56 trillion. This represents 37% of FGN expenditure and 69% of revenues. Improved domestic resource mobilization will significantly reduce government’s borrowing requirement.” it further read.
While admitting the impacts of heavy reliance on loans, the Tinubu-led administration has not stopped borrowing.
The World Bank recently approved $500million loan for the Tinubu-led administration, the tenth it would approve for his administration.
As of June 2024, the country’s public debt grew to N134.2 trillion, up from the N87.3trillion it stood at when Tinubu came into power.
Fusion Chronicle Reporters earlier reported that Nigeria is set to spend N50 trillion on debt servicing between 2025 and 2027, a review of the medium term expenditure framework of the country showed.
According to the document, in 2025, the government plans to spend N15.3 trillion on debt servicing, it plans to spend N15.5 trillion in 2026 and another N19.4 trillion in 2027.
In total, the federal government plans an expenditure of N50.2 trillion on debt servicing between the period.
