Nigeria's debt servicing climbed by 14.68% to N3.36 trillion in 2022 from N2.93 trillion spent the year before, according to data from the Debt Management Office, or DMO.
In December, according to the most recent DMO data, Nigeria's overall debt stock—which includes both domestic and external loans for 2022—rose to 46.25 trillion.
According to a breakdown of the amount, the nation spent $2.4 billion last year to service its external debt, which is equivalent to N1.07 trillion at the current exchange rate of $/N460.
On the other hand, servicing domestic debt consumed N2.56 trillion in 2022, with April recording the highest expense of N529.88 billion.
The ongoing increase in Nigeria's debt, according to DMO, is the result of borrowing by the federal and state governments to cover budget deficits and project funding.
The Center for the Promotion of Private Enterprise (CPPE) and the Lagos Chamber of Business and Industry, however, have denounced Nigeria's debt profile's rising rate without commensurate revenue capability.