By Elizabeth Adegbesan

Nigeria’s debt service payments increased by 49.2 percent year-on-year (YoY) to $2.01 billion in the first four months of 2025, up from $1.34 billion in the same period of 2024, according to data released by the Central Bank of Nigeria (CBN).

This rise highlights the growing pressure on the country as it struggles to manage external debt obligations amid persistent foreign exchange challenges and a weak revenue base.

Earlier, on December 18, 2024, President Bola Ahmed Tinubu presented the 2025 Appropriation Bill to a joint session of the 10th National Assembly. The budget, themed “The Budget of Restoration: Securing Peace, Rebuilding Prosperity,” aims at economic renewal, peace and security, human capital development, infrastructure, and food security.

The 2025 budget projects expected revenue of ₦36.35 trillion, total expenditure of ₦49.74 trillion, and a deficit of ₦13.39 trillion.

In their 2025 Nigeria Budget and Economic Outlook report, analysts at PricewaterhouseCoopers (PwC) noted that while government revenue is expected to grow due to reforms, reaching the ₦36.35 trillion target will require significant effort.

“Revenue generation has improved, driven by higher tax revenues and increased oil production. As of August 2024, 73.8 percent of the pro-rata budget had been achieved. Sustained growth is anticipated in 2025; however, the revenue target is unlikely to be met due to oil revenue constraints and a low tax base. Effective tax reforms will be crucial to achieving non-oil revenue targets,” PwC stated.