Nigeria’s External Debt Servicing Soars to $2.01 Billion Over Four Months
Between January and April 2025, Nigeria expended approximately $2.01 billion on external debt servicing, marking a 50% surge compared to the $1.33 billion recorded during the same timeframe in 2024.
This data, sourced from the Central Bank of Nigeria (CBN), underscores the nation’s steadfastness in fulfilling its international financial obligations and bolstering investor confidence.
Monthly Breakdown of External Debt Servicing
– January 2025: $540.67 million
– February 2025: $276.73 million
– March 2025: $632.36 million (the peak for the year)
– April 2025: $557.79 million
Remittance Inflows
Remittances from Nigerians residing abroad have also significantly contributed to the foreign exchange pool, with $328.76 million in direct remittances recorded in the first four months of 2025. The monthly breakdown is as follows:
– January 2025: $54.44 million
– February 2025: $123.59 million (the highest monthly inflow in 2025, reflecting a 130% rise from January)
– March 2025: $110.98 million
– April 2025: $37.75 million
Impact on Economy
Analysts assert that Nigeria’s endeavors to enhance macroeconomic stability and honor financial commitments, while fostering monetary policy initiatives such as exchange rate steadiness and augmented foreign investment, are mirrored in these patterns. The nation’s successful repayment of its $3.4 billion loan from the International Monetary Fund (IMF) has further elevated its sovereign creditworthiness and fiscal discipline.
Dr. Ifeanyi Ubah, head of research at Comercio Partners, observes that Nigeria’s proactive loan repayments denote positive advancement but should be complemented by comprehensive structural reforms to ensure lasting financial stability.
