Nigeria spent $3.5bn to service foreign debt in 9 months – CBN
According to the Central Bank of Nigeria (CBN), the Federal Government spent $3.57 billion in the first nine months of 2024 to service debt owed to foreign lenders.
As contained in the data obtained from the apex bank’s report on international payment statistics, the federal government debt service increased by 39.7% from the $2.56 billion spent during the same period in 2023.
The data revealed that $854.36 million was paid in May, representing the highest monthly debt servicing payment in 2024 while the highest monthly expenditure in 2023 was $641.69 million recorded in July.
A monthly breakdown of international debt figures for 2024 showed that debt servicing gulped $560.51 million in January, a 389% increase compared to $112.34 million recorded in January 2023.
A decline of 1.8% was recorded in February, with payments standing at $288.54 million in 2023 compared to $283.21 million in 2024.
The CBN data also recorded a 31.04% drop in payments made in March from $400.47 million in 2023 to $276.16 million in 2024.
However, the figure experienced an increase in April, rising from $92.85 million in 2023 to $215.20 million in 2024.
Next in line was May 2024, where the federal government spent $854.36 million to service debt — indicating a 286.52% increase compared to $221.05 million recorded in May 2023.
Debt payments declined again in June 2024, dropping from $54.35 million in the same month in 2023 to $50.82 million.
Also, the CBN data that July 2024 recorded a 15.48% drop, with payments reducing to $542.5 million compared to $641.6 million in July last year.
In August, there was a further decline of 9.69%, as the country paid $279.9 million to foreign lenders compared to $309.9 million in the same month in 2023.
However, September 2024 saw a 17.49% increase, with payments rising to $515.81 million from $439.06 million in September last year.
Concerns over Nigeria’s debt profile
Nigeria’s debt profile has remained a major concern as the country struggles with revenue generation amid humongous obligations.
In the second quarter of 2024, the Debt Management Office (DMO) said Nigeria’s combined public debt rose to N134 trillion, representing a 10% rise from N121.67 trillion in the first quarter of the year.
While domestic debt rose to N71.22 trillion ($48.44 million) in June 2024, foreign or external debt stood at N63.07 trillion ($42.90 million) in June 2024.
On November 4, President Bola Tinubu announced that Nigeria’s debt service to revenue ratio has reduced from 97% in May 2023 to 65%.
