Nigeria’s external debt service hits $2.86bn in eight months – CBN

Nigeria spent $2.86 billion on external debt service during the first eight months of 2025, accounting for nearly 70 percent of the country’s total foreign payments, according to the Central Bank of Nigeria (CBN).
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Data released by the CBN on Wednesday reveals that from January to August 2025, Nigeria’s total foreign payments amounted to $4.14 billion, with debt servicing taking the largest share at 69.1 percent. This points to a slight reduction from the same period in 2024, when $3.06 billion, or 70.7 percent, of the $4.33 billion foreign payments went to debt obligations.
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The breakdown by month demonstrates volatility in Nigeria’s repayment schedule. For example, March and April 2025 saw massive increases in debt payments compared to the previous year, with March spending more than doubling to $632.36 million.
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Meanwhile, May 2025 recorded a sharp decline, falling 73 percent from the previous May to $230.92 million. Despite the overall decrease of $198 million in debt service payments compared to 2024, the continuing high ratio of debt service to total foreign payments raises concerns about the fiscal vulnerability. Almost seven out of every ten dollars leaving the country goes toward meeting external debt, which limits resources available for critical imports and investments.
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Fitch Ratings, in their recent outlook, warned that Nigeria’s external debt service is projected to rise to $5.2 billion in 2025, including a major Eurobond repayment due in November.
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Experts stressed the need for stronger revenue generation and fiscal management to reduce the heavy burden of debt service.