The Federal Government’s debt servicing bill has hit N1.3 trillion in just two months, from December 2024 to January 2025.
According to the latest economic report released by the Central Bank of Nigeria (CBN), the country spent N696 billion on debt servicing in December 2024 and another N696 billion in January 2025.
This astronomical figure has raised concerns about the sustainability of Nigeria’s debt profile and the government’s ability to manage its finances effectively.
The monthly average budget for debt servicing stood at N689 billion, which the government has exceeded in the two months under review.
The report also revealed that the federal government’s retained revenue for January 2025 was N483 billion, while aggregate expenditure totaled N1.617 trillion. Consequently, an overall budget deficit of N1.133 trillion was recorded in January 2025.
Critics have argued that the government’s reliance on borrowing is unsustainable and poses significant risks to the economy. “The government’s debt management strategy is worrisome, and it’s essential for them to rethink their approach to borrowing,” said a financial analyst.
