Financial analysts have issued a stark warning that Nigeria's federal government may soon see up to 90% of its revenue consumed by debt servicing obligations.
The assessment highlights the severe fiscal strain facing Africa's largest economy as borrowing costs rise and revenue collection faces headwinds.
The warning comes amid broader concerns over Nigeria's macroeconomic stability.
With a significant portion of government income potentially directed toward interest and principal repayments, the fiscal space for critical public investments in infrastructure, healthcare, and education is being rapidly eroded.
This dynamic raises questions about the sustainability of the current debt trajectory and the government's ability to meet its development goals without further external financing.
The situation is compounded by recent reports of revenue shortfalls in key sectors.