Nigeria expended a total of $5.47bn on external debt servicing between January 2024 and February 2025, data from the Central Bank of Nigeria have shown.
The figures, published on the apex bank’s website, indicate the growing burden of debt obligations on the country’s external reserves and fiscal stability.
An analysis of the data revealed that debt service payments fluctuated over the period, with May 2024 recording the highest outflow at $854.37m, while June 2024 saw the lowest monthly payment of $50.82m.
A breakdown of the data showed a 1.9 per cent increase in debt service payments from $276.17m in March 2024 to $283.22m in February 2024.
However, in April 2024, the amount fell by 22.1 per cent to $215.20m, before surging by 297 per cent in May to $854.37m, marking the highest single-month expenditure in the 14-month period.
In June 2024, debt service payments plummeted by 94 per cent to $50.82m, the lowest recorded in the period under review.
The figure rebounded in July 2024, rising by 967.4 per cent to $542.50m. This was followed by a 48.4 per cent drop in August 2024 to $279.95m, before increasing by 84.2 per cent in September 2024 to $515.81m.
In October 2024, debt service payments remained largely unchanged, rising marginally by 0.01 per cent to $515.86m.
However, in November 2024, the figure dropped by 54.9 per cent to $232.50m, before increasing again in December 2024 by 41.4 per cent to $328.91m.
Debt service payments surged again in January 2025, rising by 64.4 per cent to $540.67m, before falling by 48.8 per cent in February 2025 to $276.73m.
The fluctuating nature of debt service payments highlights the continued pressure on Nigeria’s foreign exchange reserves.
With $5.47bn already spent on debt servicing in 14 months, concerns over the country’s debt sustainability and fiscal outlook persist.
Saturday PUNCH further observed that within the 14-month period, Nigeria spent about 63.66 per cent of its international payments on servicing foreign debts.
Nigeria’s total debt service costs, including external and domestic obligations, rose in the third quarter of 2024, reflecting the combined impact of increased external debt service payments and currency depreciation.