Nigeria incurred N10.61 trillion in additional debt-service costs between June 2023 and December 2025, exceeding the N6.47 trillion spent on strategic infrastructure development during the same period.
The figures are contained in the Federal Government’s Nigeria’s Reform Scorecard: The Benefits, Costs and Harms Prevented, released by the Federal Ministry of Finance on Wednesday.
What the data is saying
External debt servicing accounted for the largest share of the additional costs, with N9.37 trillion attributed to the impact of naira depreciation on foreign-denominated debt.
Another N1.24 trillion was added to domestic debt-service costs as a result of higher monetary policy rates.
Combined, the additional debt-service burden of N10.61 trillion was approximately 64% higher than the N6.47 trillion allocated to strategic infrastructure during the period.
This means that for every N1 spent on strategic infrastructure, the government incurred approximately N1.64 in additional debt-service costs.
The figures highlight the significant fiscal impact of exchange-rate movements and elevated interest rates on Nigeria’s public finances during the period.
What they are saying
According to the Federal Government’s reform scorecard, the additional debt-service costs reflect the financial consequences of the economic adjustments and market conditions experienced during the period.
The report identifies exchange-rate depreciation as the dominant factor behind the increase in external debt-servicing costs, while higher monetary policy rates significantly increased the cost of servicing domestic obligations.
The comparison also highlights the growing pressure debt servicing places on government resources, with additional financing costs exceeding expenditure on strategic infrastructure by more than N4 trillion between June 2023 and December 2025.
