Nigeria Spent $5.2bn Servicing External Debt in 2025 – CBN Data Reveals Rising Financial Pressure
Nigeria spent about $5.21bn servicing external debt in 2025, according to data released by the Central Bank of Nigeria. The figure represents more than 72 per cent of the country’s total international payments during the year, highlighting the growing pressure of foreign debt repayments on the nation’s finances. The data, published by the apex bank under the leadership of Olayemi Cardoso, shows that a large portion of Nigeria’s foreign outflows is now being used to settle debt obligations.
The latest figures reveal that external debt service rose from $4.66bn in 2024 to $5.21bn in 2025, marking an increase of about $551.86m or 11.9 per cent year-on-year. This rise came despite a slight decline in Nigeria’s overall international payments, which dropped from $7.44bn in 2024 to $7.22bn in 2025. As a result, the share of international payments dedicated to debt servicing jumped significantly from 62.58 per cent in 2024 to 72.11 per cent in 2025, indicating that a larger portion of Nigeria’s external spending is now tied to debt repayments.
The data further suggests that nearly three out of every four dollars Nigeria paid externally in 2025 went toward servicing foreign debt. Analysts say this trend reflects the increasing weight of debt commitments on the country’s external financial obligations. Monthly repayments varied widely during the year, largely depending on the maturity schedule of Nigeria’s external loans.
The highest repayment occurred in November 2025, when Nigeria paid $1.31bn in external debt service out of $1.49bn in total international payments, meaning debt servicing accounted for almost the entire foreign outflow for that month. Another significant repayment was recorded in March 2025, when the country paid $632.36m out of $786.86m in total payments. In contrast, June 2025 recorded one of the lowest repayments at $143.39m, while other notable payments included $557.79m in April, $542.70m in September, $302.30m in August, and $179.95m in July.
Meanwhile, early figures for January 2026 show mixed trends. Nigeria paid $256.81m in external debt service, down significantly from $540.67m in January 2025, though higher than the $205.73m recorded in December 2025. Credit rating agency Fitch Ratings had earlier projected that Nigeria’s external debt service would reach $5.2bn in 2025, including major repayments such as a $1.1bn Eurobond maturity in November. While the agency considers the country’s debt obligations manageable, it warned that high interest costs, weak government revenue, and limited fiscal space remain major concerns for Nigeria’s public finances.
source: punch