Nigeria has projected a debt service bill of ₦15.9 trillion for 2026 in its newly approved medium-term fiscal framework, despite the nation’s rising debt burden.
The approved framework sets out the parameters for the 2026 fiscal year, with total projected revenue of ₦34.33 trillion and planned spending of ₦54.5 trillion.
The anticipated debt service of ₦15.9 trillion accounts for a significant portion of total expenditure and reinforces concerns about the sustainability of Nigeria’s borrowing path and the rising cost of servicing accumulated obligations.
The medium-term plan also projects non-recurrent debt expenditure of ₦15.27 trillion in 2026, indicating sizeable redemption and refinancing commitments in addition to regular servicing costs.
This composition places debt-related obligations among the largest components of federal spending and contributes materially to the projected ₦20.1 trillion fiscal deficit.
Fiscal analysts note that Nigeria’s debt service burden continues to grow faster than revenues, driven by elevated domestic interest rates, a depreciating exchange rate, and persistent reliance on borrowing to fund budget shortfalls.
The framework sets an exchange rate benchmark of ₦1,512 per dollar for 2026, a rate that is likely to have further implications for external debt servicing totals.
While the government maintains that medium-term reforms will improve non-oil revenue mobilisation and support a more sustainable balance, the scale of projected debt-related spending signals ongoing budgetary vulnerability.
The 2026 projection emphasises the structural challenge of aligning rising debt costs with moderate revenue growth and an expanding expenditure base.
The medium-term framework is expected to guide the preparation of the 2026 Appropriation Bill, with debt servicing remaining a central factor shaping fiscal priorities, deficit financing strategy, and the government’s capacity to fund development initiatives.