Nigeria’s foreign debt servicing costs surged to $3.57 billion in the first nine months of 2024, reflecting a substantial 39.7 per cent increase compared to the $2.56 billion spent during the same period in 2023, according to data from the Central Bank of Nigeria (CBN).
This sharp rise underscores the growing fiscal burden the country faces as it grapples with both rising debt and shrinking revenues.
The monthly breakdown of Nigeria’s debt servicing expenditures shows a volatile pattern in 2024. The highest monthly payment was recorded in May, with $854.36 million paid to service the debt.
This represents a staggering 286.5 per cent increase from the $221.05 million paid in May 2023. Conversely, the lowest payment in 2024 occurred in June, with just $50.82 million spent—slightly lower than the $54.35 million in June 2023.
Notably, debt servicing costs began the year with a significant rise. In January 2024, the government spent $560.51 million—an eye-watering 389 per cent increase compared to $112.34 million in January 2023.
However, the trend wasn’t consistently upward. February saw a modest decline of 1.8 per cent, with payments dropping from $288.54 million in 2023 to $283.21 million in 2024.
March continued this downward trajectory with a 31 per cent drop in payments to $276.16 million, down from $400.47 million in 2023.
The rising costs of servicing Nigeria’s foreign debt come at a time of increasing public debt.
In the second quarter (Q2) of 2024, Nigeria’s total public debt reached N134 trillion, up by 10 per cent from N121.67 trillion in the first quarter. The domestic debt increased to N71.22 trillion ($48.44 billion) while the external debt stood at N63.07 trillion ($42.90 billion) as of June 2024.
