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Debt servicing consumes 69% of Nigeria’s foreign outflows
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Payments fell 6.5% from same period in 2024
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CBN data shows erratic monthly debt obligations
Nigeria spent $2.86 billion on external debt servicing between January and August 2025, according to new data released by the Central Bank of Nigeria (CBN).
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The figure represents 69.1% of the country’s total foreign payments of $4.14 billion within the eight-month period. Comparatively, Nigeria paid $3.06 billion in the same period of 2024, accounting for 70.7% of outflows.
Erratic monthly payments
The CBN data shows wide fluctuations in monthly debt service. In March 2025, the country paid $632.36 million, more than double the $276.17 million spent in March 2024. In May, however, outflows crashed to $230.92 million, a steep decline from $854.37 million recorded in May 2024.
By June, debt payments dropped further to $143.39 million before recovering to $302.3 million in August. Analysts say these swings reflect the non-discretionary and structured nature of Nigeria’s debt contracts.
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Debt dominates forex outflows
The report underscores the heavy burden of external debt on Nigeria’s foreign reserves. Nearly seven out of every ten dollars leaving the country went into debt repayments, limiting foreign exchange allocations for imports, capital goods, and economic growth support.
Rising reserves despite pressure
Despite the pressure, Nigeria’s external reserves have surpassed $42 billion, the highest in over six years, buoyed by improved oil output even as global crude prices remain below the government’s budget benchmark of $75 per barrel.
