Nigeria’s foreign debt servicing surged by 107.7% to N3.8 trillion between January and August 2024, far exceeding the N1.83 trillion initially projected in the 2024 budget.
This increase was revealed in the 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF & FSP).
The report shows that foreign debt servicing costs overshot projections by N1.97 trillion.
In contrast, domestic debt servicing slightly exceeded estimates, rising by only 2%.
While the budget allocated N3.53 trillion for domestic debt servicing, actual spending totaled N3.6 trillion—a difference of N71 billion.
In total, the government set aside N7.41 trillion for debt servicing during the period, which included domestic debt, foreign debt, sinking funds, and interest on FGN notes for securitised ways and means.
However, N5.51 trillion has been spent so far, accounting for 34.4% of the total allotment.
This highlights the mounting budgetary burden, as debt servicing continues to eat a sizable amount of government revenues.
Despite the pressure from debt servicing, the report highlighted improved performance in non-oil revenue generation, which totaled N3.81 trillion as of August 2024.
This achievement reflects 160.1% of the targeted amount, cushioning the underperformance in oil revenues.
Corporate Income Tax (CIT) revenues amounted to N1.71 trillion, exceeding the objective by 74.5%, while Value Added Tax (VAT) contributions was N530.41 billion, beating expectations by 55.1%. Customs revenues also fared well, totalling N969.89 billion, or 95% of the target, owing to increased trade activity and greater efficiency.
Independent revenue streams contributed N2.3 trillion, forming part of the N4.83 trillion from other revenue sources.
These gains have partially mitigated shortfalls from oil revenue.
Oil revenues, however, underperformed significantly.
The gross oil and gas revenue for 2024 was projected at N20 trillion, but only N9.83 trillion was realized by August—representing a performance rate of 72.1%.
Net oil and gas inflows to the Federation Account were N8.5 trillion after statutory deductions, which included the 13% derivation for oil-producing states. Due to production limitations and price volatility in the oil industry, this amount was N2.86 trillion below the prorated target.
In contrast, non-oil revenues exceeded expectations, outperforming the prorated target by N3.53 trillion, a 49.3% increase.
