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By Lizzy Chirkpi
Nigeria has spent $2.86 billion in servicing external debt between January and August 2025, according to data released by the Central Bank of Nigeria (CBN) on Thursday.
The amount accounted for 69.1 per cent of the country’s total foreign payments of $4.14 billion within the period. By comparison, Nigeria paid $3.06 billion on external debt service during the same period in 2024, which represented 70.7 per cent of foreign payments valued at $4.33 billion.
The CBN figures showed monthly fluctuations in debt servicing, ranging from $540.67 million in January to $276.73 million in February, and rising again to $632.36 million in March before varying across the subsequent months.
Global ratings agency Fitch Ratings has projected Nigeria’s external debt service to increase from $4.7 billion in 2024 to $5.2 billion in 2025, including $4.5 billion in amortisation payments and a $1.1 billion Eurobond repayment due in November 2025. The agency expects debt service to ease to $3.5 billion in 2026.
Fitch also noted a delay in Eurobond coupon payment in March 2025, describing it as evidence of weak public finance management. It warned that while Nigeria’s debt service levels are moderate globally, low revenue mobilisation and high interest costs remain major risks.
The agency forecast Nigeria’s general government debt at 51 per cent of GDP in 2025–2026, with revenues averaging 13.3 per cent of GDP. Interest payments are projected to take up more than 30 per cent of government revenue, and nearly 50 per cent for the Federal Government.