The Federal Government plans to allocate a significant portion of its budget to debt servicing between 2025 and 2027, outpacing allocations for capital expenditure.

This is based on the recently approved 2025–2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper, which projects debt servicing costs at N50.39 trillion for the three years, surpassing the N48.93 trillion earmarked for capital expenditures. The rising debt servicing costs, which are expected to grow by 26.7% from N15.38 trillion in 2025 to N19.49 trillion in 2027, pose concerns about fiscal sustainability.