Nigeria’s External Debt Service Hits $2.86 Billion in Eight Months

Nigeria’s External Debt Service Hits $2.86 Billion in Eight Months

Nigeria’s external debt service bill has reached $2.86 billion in the first eight months of 2025, according to the Central Bank of Nigeria (CBN). This amount represents 69.1% of the country’s total foreign payments of $4.14 billion during the period. Compared to the same period in 2024, Nigeria’s debt service bill decreased by $198 million, but the share of debt in overall foreign payments remains high .

Monthly Breakdown of Debt Service Payments
The monthly debt service payments have been volatile, with significant fluctuations observed between months. Here are some key highlights :
January 2025: $540.67 million was spent on debt service, down 3.5% from $560.52 million in January 2024
February 2025: $276.73 million was spent, slightly below the $283.22 million in February 2024
March 2025:Payments surged to $632.36 million, more than double the $276.17 million in March 2024
April 2025:

Payments reached $557.79 million, 159% higher than the $215.20 million in April 2024
May 2025:Debt service dropped sharply to $230.92 million, down 73% from $854.37 million in May 2024

The high debt service payments have significant implications for Nigeria’s economy. With nearly 70% of its foreign exchange outflows going towards debt repayment, the country is left with limited fiscal space for critical imports and investments. Fitch Ratings has warned that Nigeria’s external debt service will increase to $5.2 billion in 2025, including a $1.1 billion Eurobond repayment due in November .

Fitch Ratings expects Nigeria’s external debt service to remain a challenge, with high-interest costs, weak revenue performance, and limited fiscal space posing significant concerns. The agency projects that general government debt will hover around 51% of GDP in 2025 and 2026, while revenue-to-GDP will average just 13.3% .