Nigeria’s Foreign Debt Servicing Reaches N5 Trillion in First Nine Months of 2024 Under Tinubu’s Administration

An analysis of data from the Central Bank of Nigeria’s international payments system indicates that the country allocated $3.5 billion (N5 trillion) to service foreign debt from January to September 2024.

The review reveals that in January alone, debt servicing amounted to $560.5 million. With an exchange rate of N909 per dollar, this translated to N509.511 billion.

February saw external debt payments of $283.3 million, with the naira averaging an exchange rate of N1,402. Consequently, the cost of debt servicing for the month was about N397.186 billion.

In March, Nigeria spent $276.1 million on debt servicing, at an exchange rate of N1,512 per dollar, amounting to approximately N417.463 billion.

By April, debt servicing costs were $215.2 million, with the naira valued at N1,225 to the dollar. This equaled N263.620 billion.

In May, Nigeria’s foreign debt servicing expenses surged to $854.365 million. With an average exchange rate of N1,424, the naira conversion reached N1.216 trillion.

June saw debt servicing costs at $50.8 million, with the naira trading at N1,492 per dollar, resulting in N75.793 billion.

July’s debt servicing expenses amounted to $542.5 million. At an exchange rate of N1,568 per dollar, this equaled N850.6 billion.

In August, the country spent $279.954 million on external debt servicing, with an exchange rate of N1,588, equating to N444.566 billion.

Finally, in September 2024, foreign debt servicing reached $515.8 million. With the dollar averaging N1,625, this cost Nigeria about N838.175 billion.

Altogether, the country spent N5 trillion on foreign debt servicing during these nine months, sparking concern about the heavy financial burden of debt servicing and its implications for Nigeria’s development.