Nigeria spent about $2.01 billion on servicing its external debt between January and April 2025, marking a 50 percent increase compared to the $1.33 billion recorded in the same period last year. This is according to the latest international payments data released by the Central Bank of Nigeria (CBN) and obtained by The PUNCH.
The data reveals that debt servicing accounted for 77.1 percent of Nigeria’s total international payments during the four-month period, a significant rise from 64.5 percent in the corresponding months of 2024.
Overall, Nigeria’s total international payments—which include debt service, remittances, and letters of credit—stood at $2.60 billion by April 2025, up from $2.07 billion recorded in the same timeframe last year.
The increase in debt servicing coincides with a reported decline of approximately $3 billion in the country’s foreign exchange reserves over the period, highlighting growing pressure on Nigeria’s external finances.
Breaking down the monthly payments, Nigeria paid $540.67 million toward external debt in January 2025, slightly below the $560.52 million paid in January 2024. In February, the payment was $276.73 million, remaining nearly unchanged from the $283.22 million recorded in the same month last year.
The sharp rise in external debt servicing underscores the urgent need for effective debt management strategies and economic reforms to alleviate pressure on Nigeria’s foreign exchange reserves and ensure long-term financial stability.
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