Nigeria is set to spend an alarming N50trillion on debt servicing between 2025 and 2027, a review of the Medium Term Expenditure Framework (MTEF) of the country has shown.
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 President Bola Tinubu-led Nigerian government plans an expenditure of N50.2trillion on debt servicing between the period.
This development comes even as the government already spent N7.4 trillion on debt servicing between January and August 2024.
The Bureau Newspaper had on Monday reported that while the government plans to spend N15.3trillion on debt serving in 2025, it only plans N16.4trillion for its capital expenditure which are meant for infrastructure development.
In 2026, Capital expenditure is expected to gulp N15.9 trillion while in 2027, the figure is estimated at N16.5 trillion.
This means that in the next three years, the government plans N50.2 trillion for debt servicing and N48.8 trillion for capital expenditure.
This would mean Nigeria plans to spend more on debt servicing than providing infrastructures in the next three years.
Debt servicing is a resultant effect of heavy reliance on loans by the country to augment its faltering revenue .
Debt servicing has been blamed for robbing the country of resources that could have been channeled for developmental purposes.
Nigeria suffers from development challenges across key sectors such as health, water, education among others.