The African Development Bank (AfDB) has expressed concerns about Nigeria's growing debt burden. The institution warns that the country could allocate up to 75% of its federal revenue to paying interest in 2025

The AfDB published the forecasts in the African Economic Outlook report, entitled “Making African Capital Work Better for Africa's Development.” This report highlights the challenges to Nigeria's fiscal sustainability. According to the report, “although the debt-to-GDP ratio is low, a country may still face a heavy debt burden if a substantial portion of revenue is spent on debt service payments.” Data from the Central Bank of Nigeria style="font-family: "Bookman Old Style”, serif">shows that the country spent more than $2.01 billion servicing external debt between January and April 2025. This represents an increase of 50% compared to the same period in 2024 and 77% of total external payments during this period. At the beginning of 2024, debt service represented just under 65% of total currency outflows.