Nigeria’s federal government is facing a severe fiscal squeeze, with analysts warning that debt servicing obligations could soon consume up to 90% of total revenue.
The projection underscores the mounting pressure on the West African nation’s budget as borrowing costs rise and economic reforms take hold.
The warning comes as the government has significantly accelerated its borrowing pace.
Total sovereign debt issuance has jumped 75.6% year-on-year, according to recent data.
This surge in supply adds to the strain on an economy already grappling with the aftermath of major policy shifts.
The fiscal trajectory stands in contrast to expectations following the removal of fuel subsidies in May 2023.