The World Bank says nearly 80 per cent of sub-Saharan African countries spend more on servicing public debt than on either healthcare or education, raising concerns about the funding of essential public services across the region.
In its October 2026 Africa Economic Update, the bank warns that rising interest payments are putting increasing pressure on government finances and limiting resources available for development.
The report indicates that interest payments averaged between 2.9 and 3.2 per cent of the region’s Gross Domestic Product between 2023 and 2026.
Although the region’s fiscal deficit is projected to decline to 3.5 per cent of GDP in 2026, from 5.6 per cent in 2020, the World Bank cautions that mounting debt-servicing obligations continue to constrain public spending.
The bank also notes that domestic borrowing has become the leading source of government financing since 2021, accounting for more than half of total public debt.
It warns that higher interest rates and shorter repayment periods on domestic loans expose governments to greater refinancing risks, further tightening their fiscal space.
In Nigeria, the burden of debt servicing has also increased.
An analysis of Debt Management Office data by Nairametrics shows that the country spent approximately 16 trillion naira on debt servicing in 2025, representing a 22.9 per cent increase from the 13.02 trillion naira recorded in 2024.
The World Bank warns that as debt repayments consume a growing share of government revenue, fewer funds remain available for critical sectors, including infrastructure, healthcare, education and social protection.
The development highlights the growing challenge facing African governments as they seek to meet debt obligations while funding essential services and improving citizens’ welfare.
