Debt servicing has emerged as a significant component of Nigeria’s foreign payment obligations in 2024, accounting for a staggering 63.56 percent of the total $5.63 billion in foreign payments in nine months.
This is according to an analysis of the latest international payment statistics data of the Central Bank of Nigeria (CBN).
This percentage marks a sharp increase compared to the same period of 2023 when debt servicing constituted 46.71 percent of $5.48 billion in total foreign payments.
The rise in debt servicing costs reflects the increasing burden of Nigeria’s external debt obligations amid persistent fiscal challenges.
The country’s total debt service payments surged by 39.77 percent from $2.56 billion between January and September 2023 to $3.58 billion in the same period of 2024, highlighting the growing financial strain on public resources.
Nigeria’s debt servicing in January 2024 stood at $560.52 million, a massive 398.91 percent increase compared to $112.35 million in January 2023. Debt servicing accounted for 73.97 percent of total foreign payments of $757.41 million for the month.
February saw a marginal decline in debt servicing costs, decreasing by 1.84 percent from $288.54 million in 2023 to $283.22 million in 2024.
Total foreign payments for the month fell to $424.96 million, with debt servicing accounting for 66.65 percent.
In March, debt servicing dropped significantly by 31.04 percent year-on-year, from $400.47 million in 2023 to $276.17 million in 2024.
However, it remained a notable portion of total foreign payments, representing 65 percent of the $424.71 million disbursed.
April’s debt servicing costs jumped by 131.77percent, rising to $215.20 million in 2024 from $92.85 million in 2023.
During the same period, total foreign payments reached $462.54 million, with debt servicing consuming 46.53percent of the total.
Debt servicing in May reached its highest monthly value in 2024, totalling $854.37 million—a 286.50 percent increase compared to $221.05 million in May 2023.
This substantial expenditure accounted for 68.84percent of total foreign payments, which stood at $1.24 billion.
In June, debt servicing costs declined by 6.51 percent from $54.36 million in 2023 to $50.82 million in 2024.
Despite this drop, total foreign payments also fell to $353.61 million, with debt servicing taking up a relatively smaller share of 14.37percent.
Debt servicing in July dropped by 15.46 percent year-on-year, from $641.70 million in 2023 to $542.50 million in 2024. Total foreign payments stood at $694.45 million, with debt servicing accounting for 78.13 percent.
August recorded a 9.68 percent decline in debt servicing costs, which decreased to $279.95 million in 2024 from $309.96 million in 2023. Debt servicing made up 59.16percent of total foreign payments for the month, which amounted to $473.00 million.
In September, debt servicing increased by 17.48 percent, rising from $439.06 million in 2023 to $515.81 million in 2024. Total foreign payments for the month were $798.26 million, with debt servicing consuming 64.64 percent.
