In the fourth quarter of 2024, Nigeria spent $1.8 billion on servicing its external debts, with the International Monetary Fund (IMF) receiving the largest share of $407.97 million. This payment to the IMF marked the highest amount paid to any multilateral creditor during this period. Other international financial institutions, such as the International Development Association (IDA) and the African Development Bank (AfDB), also received notable portions, totaling $116.48 million and $43.89 million, respectively.
Nigeria’s external debt payments during the same quarter were not limited to multilateral creditors. The country paid $430.53 million to commercial creditors, with syndicated loans accounting for $280.16 million. Payments to Eurobond holders amounted to $148.57 million, with smaller payments directed to banks like UniCredit and Standard Chartered. Additionally, the government spent $46.85 million servicing bilateral debts, with France’s Agence Française de Développement and Germany’s KfW receiving the most significant shares.
The Debt Management Office (DMO) also reported that Nigeria’s external debt saw a substantial increase of 83.89% from December 2023 to December 2024, growing from N38.22 trillion ($42.50 billion) to N70.29 trillion ($45.78 billion). Despite this rise in debt, the Nigerian government has managed to reduce the revenue-to-debt service ratio from 97% to 65%, a significant improvement under the current administration.
Moreover, the Central Bank of Nigeria (CBN) reported a notable decline in debt service payments from $540 million in January 2025 to $276 million in February 2025. This reduction aligns with ongoing efforts by the federal government to restructure its debt portfolio, enhance dollar liquidity, and alleviate pressure on the foreign exchange market.
Source: The Guardian