The Nigerian federal government spent a total of $3.57 billion servicing the country’s foreign debt in the first nine months of 2024, a sharp increase of 39.7% from the $2.56 billion spent during the same period in 2023. This spending is highlighted in the Central Bank of Nigeria (CBN) report on international payment statistics.
The highest monthly debt servicing payment in 2024 occurred in May, totaling $854.36 million, a significant rise from $641.69 million in July 2023. In contrast, the highest payment recorded in 2023 was $641.69 million in July, underscoring the growing debt burden.
A closer look at the monthly breakdown reveals notable fluctuations in debt servicing costs throughout the year. January saw a dramatic 389% increase in debt servicing costs, reaching $560.51 million, compared to just $112.34 million in January 2023. February and March showed slight declines, with February’s payments dropping 1.8% to $283.21 million and March’s falling 31.04% to $276.16 million.
The most significant increase came in May 2024, where Nigeria spent $854.36 million on debt servicing, marking a staggering 286.52% increase from $221.05 million in May 2023. On the other hand, June experienced a slight dip, with payments falling to $50.82 million from $54.35 million in June 2023. July recorded a 15.48% decline, while August also saw a decrease of 9.69%. However, September 2024 marked a 17.49% increase, with payments rising to $515.81 million from $439.06 million in the same month of 2023.
Debt management has been a growing concern for the country. In the second quarter of 2024, Nigeria’s public debt surged to N134 trillion, up by 10% from N121.67 trillion in the first quarter. Domestic debt rose to N71.22 trillion ($48.44 billion), while external debt stood at N63.07 trillion ($42.90 billion) as of June 2024.