The Chief Executive Officer (CEO) of CFG Advisory, Mr. Tilewa Adebajo, has expressed concern over Nigeria’s rising debt servicing costs, which, according to him, are now being paid for by the funds that the Federal Government saved from removing the subsidy on petrol.

Adebajo, who stated this in the firm’s “Nigeria 2025 economic forecast,” contended that the country’s debt servicing cost, which doubled from N8 trillion in 2024 to N16.3 trillion in the 2025 proposed budget, “is not sustainable as it exceeds the defence, security, infrastructure, education, and health budgets combined at N14 trillion.”

He said: “Nigeria’s 18-month economic reform program has yielded mixed results, largely due to poor implementation and putting the cart before the horse. The program’s biggest impact on the economy has been the devaluation of the naira from about N450- 1700/US$.

“The cost push effect of fuel subsidy removal worsened the situation in an economy already in stagflation with sharp increases in inflation trajectory. This led to reduced household purchasing power and higher interest rates for the firms and the economy. The social intervention program has also not made any impact failing to provide succour.

“To exacerbate matters, government borrowing has exceeded the $100 billion mark and debt service costs doubling from N8 trillion in 2024 to N16.3 trillion in the 2025 proposed budget. N16.3 trillion in debt servicing is not sustainable as it exceeds the defence, security, infrastructure, education, and health budgets combined at N14 trillion