Debt Service Gulped  $560m in January, 399% YoY Increase

Nume Ekeghe

Nigeria continues to battle economic headwinds, it has emerged that the federal government spent $560 million servicing the country’s external debt in January 2024.

Analysis of the Central Bank of Nigeria (CBN) Weekly International Payments showed that the amount spent in January was 339 per cent higher when compared to $112 million spent on debt service in January of 2023.   

In 2023, Nigeria spent $3.5 billion to service its external debt, which was a significant increase from the $2.4 billion spent in 2021.

The month-to-month breakdown of Nigeria’s debt servicing in 2023 reveals dynamic trends, shedding light on the country’s economic landscape. The year commenced with debt servicing at $112 million. A substantial leap occurs in February, reaching $288 million.  

The momentum continues into March, with debt servicing escalating to $400 million. April experiences a dip, recording $93 million Debt servicing rebounds in May, totalling $221 million.

June reflects a noticeable adjustment at $54 million however, July stands out as a peak month, hitting $641 million. A significant decline occurs in August, plummeting to $310 million while September sees an increase climbing to $439 million.

October records $509 million followed by a decrease in November to $368 million. The year 2023 concludes with a notable decrease in December, reaching $65 million Year-end adjustments before it notably peaked again at $560 million in January 2024.