Nigeria spent $2.86bn servicing external debt between January and August 2025, data from the Central Bank of Nigeria has shown. The figure represents 69.1 per cent of the nation’s total foreign payments of $4.14bn within the period.
In the corresponding period of 2024, debt service stood at $3.06bn, or 70.7 per cent of total foreign payments valued at $4.33bn. This indicates a $198m year-on-year drop in actual debt servicing, though the share of debt in overall foreign outflows remains high.
Monthly figures highlight sharp fluctuations. In January 2025, $540.67m was paid compared to $560.52m in January 2024. February dropped to $276.73m, down by $6.49m year-on-year. March surged to $632.36m, more than double the $276.17m of March 2024. April payments also spiked to $557.79m, compared with $215.20m a year earlier.
May showed a sharp decline at $230.92m, against $854.37m in May 2024. June payments climbed to $143.39m, significantly higher than the $50.82m recorded in June 2024. July fell to $179.95m compared to $542.5m in July 2024, while August rose to $302.3m, slightly above the $279.95m of August 2024.
The volatility underscores Nigeria’s erratic repayment schedule, with swings of over 100 per cent between some months. Despite spending less overall this year, debt obligations continue to consume nearly three-quarters of the country’s international outflows.
Ratings agency Fitch recently projected that Nigeria’s external debt service will climb from $4.7bn in 2024 to $5.2bn in 2025, including a $1.1bn Eurobond repayment due in November. It expects a decline to $3.5bn in 2026.
Fitch also flagged persistent fiscal challenges, citing a delayed Eurobond coupon payment in March 2025. It warned that high interest costs and weak revenues would weigh on Nigeria’s fiscal position, with government interest payments projected to consume nearly 50 per cent of federal revenues.
According to Fitch, Nigeria’s general government debt is expected to remain at about 51 per cent of GDP through 2026, while revenue-to-GDP will average just 13.3 per cent, sustaining pressure on public finances.
