Nigeria’s external debt servicing/payments costs surged by 38 per cent in the first nine months of 2024, with the Central Bank of Nigeria (CBN) spending a whopping $3.53 billion to service the country’s debts, compared to $2.56 billion during the same period in 2023. This was contained in CBN’s International Payment Data published on its website.
The steep increase underscored the intensifying fiscal pressures facing Nigeria’s economy amid dwindling revenues, inflationary pressures, and currency depreciation.
A month-by-month analysis highlighted the scale of the challenge and showed that in January 2024 Nigeria spent $560.52 million on external debt servicing, marking a sharp increase from $112.35 million in January 2023. February 2024 followed with $283.22 million, slightly below the $288.54 million recorded the previous year.
March 2024 showed a decline, with $276.17 million spent, compared to $400.47 million in March 2023, a 31 per cent drop. In April 2024, debt servicing rose to $215.20 million, a 132 per cent increase, compared to $92.85 million in April 2023.
May 2024 saw the highest monthly expenditure of $854.37 million, a staggering 287 per cent jump from $221.05 million in May 2023. By contrast, June 2024 recorded $50.82 million, slightly lower than the $54.36 million spent in June 2023.
The mid-year trend showed mixed movements as debt servicing fell to $542.50 million in July 2024, a 15 per cent decline from $641.69 million in July 2023. August 2024 followed a similar trajectory, with $279.95 million spent compared to $309.96 million the previous year, a 10 per cent reduction. However, September 2024 marked an increase, with $515.81 million spent, up 17 per cent from $439.06 million in September 2023.
The cumulative figures highlighted the stark increase in Nigeria’s debt burden. In the first nine months of 2023, the country spent $2.56 billion on external debt servicing. By the same period in 2024, this figure had climbed to $3.53 billion, a $970 million increase.
Speaking to THISDAY, Chief Executive of CFG Advisory, Tilewa Adebajo, raised concerns about the sustainability of Nigeria’s growing debt obligations.
“The debt profile is too high and unsustainable. The federal government must implement policies to grow the economy and create employment to address these challenges effectively,” Adebajo said.
Nume Ekeghe
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