Nigeria channeled approximately $5.21 billion toward servicing its external debt obligations in 2025, representing a sharp 11.9% increase from $4.66 billion the previous year and accounting for more than 72% of the country’s total international payments, according to fresh data released by the Central Bank of Nigeria (CBN).
The figures, published on the apex bank’s website, reveal that external debt repayments absorbed 72.11% of all outward foreign currency flows in 2025 up significantly from 62.58% in 2024 despite a modest 2.9% decline in overall international payments, which fell from $7.44 billion to $7.22 billion.
The data underscores the mounting weight of foreign debt obligations on Nigeria’s external finances. Nearly three-quarters of every dollar sent abroad last year went toward meeting loan repayments and interest, leaving limited room for other critical imports, investments, or reserves-building efforts.
Monthly patterns showed wide variation tied to loan maturity schedules. The heaviest burden fell in November 2025, when $1.31 billion was paid out for debt service almost the entire $1.49 billion in total international outflows that month. March also stood out with $632.36 million in repayments against $786.86 million total payments. Lighter months included June ($143.39 million), July ($179.95 million), and August ($302.30 million), reflecting the uneven distribution of repayment peaks.
The 2025 total closely matched an earlier forecast by Fitch Ratings, which in April 2025 projected external debt service would rise to around $5.2 billion, driven by $4.5 billion in amortisations (including a $1.1 billion Eurobond maturity in November) plus interest payments. The agency described the level as moderate but noted persistent public finance management challenges, including a brief delay in a March 2025 Eurobond coupon payment.
Looking into early 2026, the trend showed some relief on a year-on-year basis but pressure month-on-month. In January 2026, Nigeria spent $256.81 million on external debt service down 52.5% from $540.67 million in January 2025 while total international payments dropped 38.6% to $405.33 million from $659.67 million. Compared with December 2025, however, debt service rose 24.8% from $205.73 million, even as overall outflows fell 15.8%.
Debt servicing still dominated January’s external commitments, claiming about 63.4% of total payments lower than the full-year 2025 average but still the single largest category.
The persistent high share of debt repayments highlights ongoing fiscal strain amid Nigeria’s reliance on external borrowing to bridge budget gaps. With global interest rates elevated and oil revenues volatile amid geopolitical risks, analysts say managing the debt burden while preserving reserves and supporting growth will remain a core challenge for policymakers in the months ahead.
