CBN Data Shows 49% Jump in Nigeria’s External Debt Payments

Nigeria’s external debt repayment increased by 49% year-on-year in the first four months of 2025, this was  according to new data from the Central Bank of Nigeria (CBN).  

The country spent $2.01 billion on foreign debt servicing between January and April 2025, up from $1.33 billion in the same period last year. 

Debt repayments alone accounted for 77.1% of Nigeria’s total international payments, a sharp increase from 64.5% in 2024.  

Total international payments (including debt servicing, remittances, and letters of credit) rose to $2.60 billion, up from $2.07 billion in 2024.  

While Foreign reserves dropped by $3 billion during the same period.  

In March and April 2025 saw the highest repayments, totaling nearly $1.2 billion.  

  Also in March 2025: $632.36 million (more than double the $276.17 million paid in March 2024).  

  April 2025, $557.79 million (159% increase from $215.20 million in April 2024).  

The International Monetary Fund (IMF) confirmed that Nigeria has fully repaid the $3.4 billion emergency loan received in 2020 under the Rapid Financing Instrument (RFI) to cushion the economic impact of COVID-19.  

The repayment was completed on April 30, 2025, but Nigeria will continue paying $30 million annually in Special Drawing Rights (SDR) charges until its SDR holdings align with IMF allocations.  

The rising debt burden coincides with declining foreign reserves, raising concerns over Nigeria’s fiscal stability. Analysts warn that sustained high debt servicing costs could strain public finances and limit funds for critical infrastructure and social programs.  

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