Nigeria’s federal government paid about $243 million in debt-service obligations to a World Bank agency within three months, according to a report by SaharaReporters.
The payment comes amid growing concerns over the country’s rising debt burden and the increasing share of government revenue being committed to servicing existing loans.
The report said the payments were made under the administration of President Bola Ahmed Tinubu, citing financial records relating to Nigeria’s external debt obligations.
Nigeria has relied heavily on borrowing from multilateral institutions, including the World Bank’s International Development Association (IDA), to finance development programmes and support government spending.
However, the rising cost of servicing existing debts has become a major concern for policymakers, particularly as the government faces pressure to generate more revenue while funding infrastructure, social programmes and other public services.
President Tinubu has previously acknowledged the pressure debt servicing places on Nigeria’s finances. In May 2026, he said the country could spend about $11.6 billion on debt servicing during the year, warning that debt obligations were putting significant pressure on government revenue. (Sahara Reporters)
The latest reported payment also adds to a broader pattern of substantial debt-service expenditure under the Tinubu administration. SaharaReporters previously reported that Nigeria spent about $9.9 billion servicing external debt between June 2023 and August 2025, based on figures attributed to the Central Bank of Nigeria. (Sahara Reporters)
The development highlights the difficult balance facing the government: borrowing to finance development while ensuring that debt repayments do not consume resources needed for the wider economy.
Nigeria’s Debt Management Office is responsible for coordinating the country’s public debt, including borrowing, debt servicing and the development of debt-management strategies. (Wikipedia)
With debt-service costs continuing to attract public attention, economists and civil society groups have increasingly called for greater transparency over government borrowing, stronger revenue generation and more productive use of borrowed funds.
The reported $243 million payment therefore adds another dimension to the debate over whether Nigeria’s current borrowing strategy can deliver sustainable economic growth without placing an excessive financial burden on future generations.
The $243 million figure is based on the SaharaReporters report cited above; independent confirmation of the specific three-month payment was not located in the sources reviewed.
