The Central Bank of Nigeria has revealed that Nigeria spent $3.57 billion servicing its foreign debt during the first nine months of 2024.

This represents a 39.7% increase compared to $2.56 billion in the same period in 2023.

The data, from the CBN’s international payment statistics, highlights significant fluctuations in monthly debt servicing costs. The highest payment in 2024 occurred in May, amounting to $854.36 million, marking a 286.5% increase from the $221.05 million recorded in May 2023. Other months showed varying trends, including a steep 389% rise in January 2024 compared to January 2023.

Debt payments saw a decline in February and March 2024, but costs rose again in April. The pattern continued with fluctuations throughout the year, including a slight decrease in June and August but a notable 17.5% increase in September.
CBN: Nigeria Spent $3.5bn to Service Foreign Debt in Nine Months

The increase in foreign debt servicing comes as Nigeria’s overall public debt has been rising. According to the Debt Management Office (DMO), the country’s public debt reached N134 trillion in Q2 2024, a 10% rise from the previous quarter. External debt stood at N63.07 trillion ($42.90 billion) in June 2024.

Despite these rising costs, President Bola Tinubu recently announced a reduction in Nigeria’s debt service-to-revenue ratio from 97% to 65%.