The Federal Government of Nigeria spent $15.55 billion on debt servicing between 2019 and 2024, according to data from the Central Bank of Nigeria. Payments rose significantly from $588.33 million in 2019 to $5.40 billion in 2020, and further increased in subsequent years, reaching $3.43 billion in 2023. Between January and May 2024, the country has already paid $2.18 billion in debt service.
Fitch Ratings predicts that Nigeria’s external debt servicing will increase by $400 million to $5.2 billion in the next year, raising concerns about debt sustainability. FBNQuest Research also reports a significant rise in external debt service payments, reaching $3.5 billion in 2023, and expects further increases due to the government’s plans to access commercial debt markets and additional borrowings from concessional sources.
To support economic reforms, the government received $2.25 billion from the World Bank, including $1.5 billion for economic stabilization and $750 million for resource mobilization reforms. Finance Minister Wale Edun highlighted the government’s bold reforms aimed at restoring macroeconomic stability and fostering sustainable and inclusive economic growth.
Source: PUNCH