A new report by ActionAid International and ActionAid Nigeria has raised concerns over Nigeria’s fiscal priorities, revealing that the country now spends nearly five times more on servicing external debt than on healthcare and education combined.
The report talks about the growing burden of debt repayments on Africa’s largest economy, warning that rising obligations to creditors are limiting the government’s ability to invest in important sectors that directly affect citizens’ quality of life.
According to the findings, a large part of the national revenue is being used for debt servicing, leaving few resources for hospitals, schools, and social development programs.
ActionAid noted that the trend is especially worrying at this time when millions of Nigerians continue to face challenges related to access to quality healthcare, education, and basic public services. The organization argued that sustained underinvestment in human capital could have long-term consequences for economic growth, productivity, and poverty reduction.
The report also points to broader concerns across developing nations, where debt repayment costs have surged amid high interest rates, currency pressures, and economic uncertainty. Analysts say many governments are forced to choose between meeting debt obligations and funding important public services.
ActionAid called on policymakers to pursue debt restructuring initiatives, improve revenue generation, and prioritize investments that directly benefit citizens. The group stressed that education and healthcare spending should be treated as strategic investments rather than expendable budget items.
