Nigeria Is Not Broke: Debt Service Is Draining Public Revenue

Nigeria is not without resources. The country earns revenue from oil, gas, taxes and a huge domestic market. The deeper problem is how public money is managed after it is collected. A growing share of federal revenue now goes to servicing debt before funds can reach roads, hospitals, schools and other essential services. IMF projections indicate that interest payments could consume about 53.7% of government revenue in 2026. The 2026 budget reportedly earmarks ₦15.8 trillion for debt service. That scale of repayment leaves far less for development and raises an important question: how can Nigeria escape a cycle of borrowing to meet old debt obligations?

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