Debt service to gulp 46% of revenue in 2026 — CPPE warns
By Seun Ibiyemi
The Centre for the Promotion of Private Enterprise (CPPE) has sounded the alarm over Nigeria’s deteriorating fiscal outlook, warning that nearly half of the nation's projected revenue in 2026 will be swallowed by debt servicing.
Reacting to the Federal Government’s 2026–2028 Medium-Term Expenditure Framework (MTEF), the think tank described the country’s debt profile as a critical threat to economic stability.
The new fiscal plan projects a staggering ₦15.91 trillion for debt service in 2026 alone accounting for 46 per cent of total expected revenue.
In a policy brief released on Sunday, the CPPE cautioned that this unsustainable debt-service-to-revenue ratio is rapidly closing the country's fiscal window.
The result, it warned, is a crowding out effect that leaves almost no room for essential funding in infrastructure, national security, and social welfare.
"While the MTEF reflects greater realism in its oil production and price benchmarks, the fundamental problem remains: Nigeria is borrowing its way into vulnerability," the statement read.
The organization criticized the growing reliance on debt, noting that without aggressive domestic revenue mobilization and a cut in government waste, the nation risks slipping deeper into a debt trap.
It also raised concerns over the late submission of the MTEF to the National Assembly, warning that a rushed legislative review could allow dangerous fiscal loopholes to pass unchecked.
The CPPE has called on the National Assembly to exercise restraint, urging lawmakers to reject any pressure to inflate the budget beyond what the country can realistically earn.
It further recommended an immediate halt to non-essential loans and a stronger push for tax reforms that expand the net without suffocating existing businesses