Nigeria has allocated a total of $2.86 billion to service its external debt in the first eight months of 2025, according to international payments data released by the Central Bank of Nigeria (CBN) on Wednesday. The figure represents 69.1% of the country’s total foreign payments of $4.14 billion during the period.
A year earlier, between January and August 2024, Nigeria spent $3.06 billion on debt servicing, accounting for 70.7% of its foreign outflows. While this year’s debt payments are lower by $198 million, debt obligations remain the dominant driver of Nigeria’s international payments, with nearly seven out of every ten dollars directed toward servicing loans.
The monthly breakdown underscores the erratic nature of Nigeria’s debt repayment schedule. In January 2025, the country spent $540.67 million compared with $560.52 million in the same month of 2024. February stood at $276.73 million, marginally lower than the $283.22 million recorded in February 2024.
Debt servicing surged in March 2025, reaching $632.36 million—more than double the $276.17 million spent in March 2024. April followed with $557.79 million, representing a 159% rise from the $215.20 million paid a year earlier.
In May, external debt servicing fell sharply to $230.92 million, down from $854.37 million in May 2024. June rose to $143.39 million compared with $50.82 million a year earlier, while July dropped to $179.95 million from $542.5 million in July 2024. By August, repayments stood at $302.3 million, slightly above the $279.95 million of August 2024.
Overall, the figures highlight that debt remains Nigeria’s largest foreign payment obligation, despite fluctuations across individual months.
Fitch Ratings recently projected that Nigeria’s external debt servicing will rise from $4.7 billion in 2024 to $5.2 billion in 2025. This includes $4.5 billion in amortizations and a $1.1 billion Eurobond repayment due in November. However, the agency expects the figure to decline to $3.5 billion in 2026.
The agency also flagged concerns over Nigeria’s fiscal management, citing a delay in a Eurobond coupon repayment in March 2025 as evidence of ongoing vulnerabilities. Fitch further warned that high interest costs, weak revenue collection, and limited fiscal space could continue to strain public finances.
Nigeria’s debt-to-GDP ratio is projected to hover around 51% in both 2025 and 2026. However, Fitch noted that with government revenues averaging only 13.3% of GDP in those years, interest payments alone could consume more than 30% of national income, with federal government ratios nearing 50%.
