The Nigerian government has spent $3.58 billion on servicing its foreign debt in the first nine months of this year, which is a 39.77% increase from the $2.56 billion spent during the same period last year.
This substantial rise in external debt service payments underscores the increasing pressure on Nigeria’s fiscal balance amid ongoing economic challenges.
Information from the Central Bank of Nigeria highlighted that May saw the highest monthly debt servicing payment this year, amounting to $854.37 million, compared to $221.05 million in May last year.
The sharp contrast illustrates the growing cost of debt obligations as Nigeria grapples with the devaluation of the naira.
Economists have expressed concerns about the rising public debt, which could create macroeconomic challenges if the debt service burden continues to grow.
A recent projection by a global credit ratings agency suggested that Nigeria’s external debt servicing will rise further next year.
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