Nigeria's foreign debt servicing costs have more than doubled to N3.8 trillion in the first eight months of 2024, far exceeding the N1.83 trillion budgeted for the year, according to the government's latest fiscal framework report.

The surge in foreign debt payments comes amid mixed revenue performance. While non-oil revenues exceeded targets, reaching N3.81 trillion (160.1% of target), oil revenues significantly underperformed, bringing in just N4.09 billion, or 75% of projections.

Key findings from the 2025-2027 Medium Term Expenditure Framework:

- Total debt servicing has consumed N5.51 trillion, representing 34.4% of the budget

- Government revenue reached N12.74 trillion, achieving 73.8% of its N17.25 trillion target

- Corporate tax collections surpassed targets by 74.5%, reaching N1.71 trillion

- VAT revenue exceeded expectations by 55.1%, totaling N530.41 billion

- Customs revenue hit N969.89 billion, achieving 95% of target

The oil sector continues to face challenges, with gross oil and gas revenue reaching only N9.83 trillion against a projection of N13.33 trillion for the period. After deductions, including the 13% derivation for oil-producing states, net oil revenue fell N2.86 trillion short of targets.

The significant increase in foreign debt servicing costs is largely attributed to the naira's depreciation, as these payments must be made in foreign currencies. This development comes as Nigeria's debt-to-GDP ratio has exceeded 50% for the first time, marking a crucial moment for the country's fiscal health.​​​​​​​​​​​​​​​​