Data from the Central Bank of Nigeria (CBN) report on international payment statistics revealed a 39.7 percent increase in federal government debt servicing, rising to $3.5 billion in the first nine months of 2024.
The report shows that May 2024 saw the highest monthly debt servicing payment, reaching $854.36 million, while the highest monthly payment in 2023 was $641.69 million in July.
A month-by-month breakdown for 2024 shows January’s debt servicing cost at $560.51 million—up 389 percent compared to $112.34 million in January 2023. In February, payments dropped by 1.8 percent from $288.54 million in 2023 to $283.21 million in 2024.
Similarly, March payments decreased by 31.04 percent from $400.47 million in 2023 to $276.16 million in 2024.
In April, however, debt payments rose to $215.20 million compared to $92.85 million in 2023, and in May, the government spent $854.36 million—up 286.52 percent from $221.05 million in May 2023.
Debt payments in June 2024 declined to $50.82 million from $54.35 million in June 2023, while July saw a 15.48 percent decrease to $542.5 million from $641.6 million last year. In August, payments fell by 9.69 percent, amounting to $279.9 million compared to $309.9 million in August 2023.
However, in September 2024, payments rose 17.49 percent, reaching $515.81 million, up from $439.06 million in September 2023.
Concerns over Nigeria’s debt management have grown, with the Debt Management Office (DMO) reporting that public debt rose by 10 percent to N134 trillion in the second quarter of 2024 from N121.67 trillion in the first quarter. By June 2024, domestic debt stood at N71.22 trillion ($48.44 million), while foreign debt reached N63.07 trillion ($42.90 million).
On November 4, President Bola Tinubu noted a reduction in Nigeria’s debt service-to-revenue ratio from 97 percent to 65 percent.
Faridah Abdulkadiri
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