Moody’s projects significant increase in Nigeria’s interest spending by 2024

Moody’s Ratings projects a significant increase in Nigeria’s interest spending, estimating a rise of 1% of GDP in 2024. Tighter monetary conditions and higher interest rates are expected to drive interest spending to consume 36% of government revenue. Moody’s warns of risks to fiscal consolidation due to higher oil subsidies and inflation shock, leading to ever-increasing interest expenses.