Nigeria spent a staggering $2.01 billion on external debt servicing between January and April 2025—marking a sharp 50% increase from the $1.33 billion paid during the same period in 2024.
Data from the Central Bank of Nigeria (CBN) reveals that debt servicing now consumes more than three-quarters of the country’s total foreign exchange (FX) outflows, further intensifying concerns over Nigeria’s rising debt burden and shrinking FX reserves.
According to the CBN’s international payments report, total foreign payments—including debt servicing, remittances, and letters of credit—stood at $2.60 billion within the first four months of the year. Of that figure, debt servicing alone accounted for 77.1%, or $2.01 billion.
This is a significant jump from 2024, when debt payments made up just 64.5% of the total $2.07 billion in FX outflows for the same period.
The rising cost of debt servicing comes amid ongoing foreign exchange instability and a fragile revenue base, placing immense strain on Nigeria’s ability to fund critical development sectors.
To make matters worse, the country’s foreign reserves have shrunk by around $3 billion over the same period, largely due to the pressure of meeting its external debt obligations.
Analysts warn that unless Nigeria aggressively restructures its debt profile and boosts non-oil revenues, the economy could face deeper fiscal stress—hindering growth and development.
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