Nigeria expended nearly $920 million on foreign debt servicing between January and February 2026, according to data from the Central Bank of Nigeria (CBN).
The payments included $440 million in January and $480 million in February, reflecting the growing cost of meeting external obligations amid rising capital outflows.
Sharp Rise in Capital Outflows
The CBN’s February 2026 Economic Report showed that total capital outflows jumped to $2.75 billion in February from $1.63 billion the previous month. This increase was mainly driven by a 91.53% surge in capital transfers to $2.26 billion, while loan repayments rose modestly to $0.48 billion.
Nigeria’s total external debt stood at over $42 billion at the end of 2025, according to the Debt Management Office. Servicing these loans continues to consume a substantial share of the country’s foreign exchange earnings, leaving limited room for other essential imports and investments.
Pressure on Reserves and Naira
The sustained outflows are adding pressure on Nigeria’s foreign reserves and the naira. With nearly $1 billion spent on debt servicing in just two months, the CBN faces increased challenges in maintaining currency stability.
For businesses, the situation means continued difficulty accessing foreign exchange for raw materials and equipment, which could drive up production costs and feed into higher consumer prices in the coming months.
The latest figures highlight the urgent need for Nigeria to boost non-oil exports, attract more stable long-term investments, and strengthen domestic revenue generation to ease the burden on its external accounts and support sustainable economic growth.
