Nigeria spent $2.86 billion on servicing its external debt in the first eight months of 2025, according to new data from the Central Bank of Nigeria.
This represented 69.1 per cent of the country’s total foreign payments of $4.14 billion during the period.
In comparison, Nigeria’s external debt servicing for the same period in 2024 was $3.06 billion, or 70.7 per cent of total foreign payments of $4.33 billion.
The data show that while Nigeria’s absolute debt service payments fell by roughly $198 million (6.5 per cent) year-on-year, debt obligations continue to dominate its foreign expenditures.
In effect, nearly $7 of every $10 that left the country between January and August 2025 was used to service external debt.
Monthly data highlighted significant fluctuations in Nigeria’s debt service payments, reflecting the timing and structure of its loan obligations.
In January 2025, payments stood at $540.67 million, slightly below $560.52 million in January 2024.
February fell further to $276.73 million, before surging to $632.36 million in March—more than double the $276.17 million recorded in March 2024.
April remained elevated at $557.79 million, compared with $215.20 million a year earlier.
May saw a sharp drop to $230.92 million, down from $854.37 million in May 2024.
June edged up to $143.39 million, nearly triple the $50.82 million paid in June 2024.
July declined again to $179.95 million, a two-thirds decrease from $542.5 million in July 2024.
By August 2025, debt service payments rebounded to $302.3 million, slightly above the $279.95 million recorded in the same month a year earlier.
The month-to-month movements underscore the volatility of Nigeria’s debt obligations:
Payments dropped nearly 49 per cent from January to February, surged 129 per cent in March, fell 12 per cent in April, plunged 59 per cent in May, declined a further 38 per cent in June, before recording modest increases in July and August.
According to CBN data, Nigeria’s external reserves have been increasing since 14 July 2025, even as crude oil prices remain volatile, trading below the 2025 budget benchmark of $75 per barrel at under $70 per barrel.
