Nigeria’s total debt service payments dropped to $276 million in February 2025, from $540 million recorded in January, 2025
This is according to the Central Bank of Nigeria (CBN)’s latest data on external sector payments released recently showed that debt serving payment declined by $264 million or 48.88 per cent
This decline comes despite the ongoing efforts by the federal government to restructure its debt portfolio, improve dollar liquidity, and ease pressure on the foreign exchange market.
The new figure indicates the increasing strain of debt obligations on Nigeria’s external reserves and overall fiscal sustainability.
According the data from CBN website, the debt service payments declined, while Letters of Credit (LCs) rose sharply, indicating increased financing of trade transactions.
The data obtained from CBN revealed that LCs issued in February 2025 totaled $95.6 million, a 48 per cent increase from $64.6 million in January 2025.
The rise in LCs suggests a recovery in import-related activities, particularly as businesses adjust to the fluctuating naira exchange rate and government policies aimed at stabilizing trade financing.