Nigeria’s Foreign Debt Service Hits $1.81bn in Seven Months

Nume Ekeghe

Data released by the Central Bank of Nigeria (CBN), has revealed that the federal government has allocated a substantial $1.81 billion to service its foreign debt obligations during the initial seven months of 2023.

A breakdown of the numbers showed that in January 2023, the federal government dedicated $112.35 million to service its foreign debt. February witnessed a higher outlay of $288.5 million, while March marked a substantial expense of $400.5 million.  

April brought about a noteworthy expenditure of $92.8 million, showcasing prudent financial management practices. May saw a total expenditure of $221 million to meet these foreign debt obligations.

However, what prominently stands out in this data is the month of June, which recorded an exceptionally high servicing cost of $543 million. July also followed suit with $642 million, marking the highest figure observed in the past 14 months.

A deeper dive into the report reveals that the total direct remittances from January to July 2023 amounted to $1.19 billion. This financial inflow plays a crucial role in balancing Nigeria’s external financial commitments.

The detailed breakdown of remittances indicates that in January, direct remittances accounted for $79.2 million, highlighting a steady financial inflow. February recorded $83.76 million in remittances, signaling financial stability. March saw a substantial sum of $138.6 million, showcasing consistent financial support. April followed closely with a remittance of $159.04 million, emphasizing the importance of financial resilience.

As the year progressed, May witnessed an influx of $202 million, reinforcing the nation’s financial stability. June experienced a significant increase, with $297.4 million in direct remittances, signifying steady financial support. July recorded an influx of $241 million, maintaining a consistent financial inflow.