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Nigeria’s 2026 budget raises debt trap fears as servicing costs surge

Street market in Kaduna, Nigeria. Photo @Pexels
Street market in Kaduna, Nigeria. Photo @Pexels
  • Debt servicing to absorb nearly 30% of Nigeria’s 2026 spending
  • Analysts flag oil revenue assumptions as overly optimistic

 

ABUJA, NIGERIANigeria’s 2026 budget plans have triggered warnings from analysts who fear Africa’s largest economy could slip into a debt trap amid soaring debt servicing costs and ambitious revenue assumptions.

The Federal Executive Council has approved the 2026–2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper, setting out spending and revenue projections that economists say carry growing fiscal risks.

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