The Central Bank of Nigeria reported a foreign debt service expenditure of $5.47 billion from January 2024 to February 2025 and a modest increase in foreign remittances to $180.03 million. Debt service payments varied significantly, resulting in heightened financial pressures on Nigeria’s economy. Total foreign exchange remittances have seen a year-on-year growth, indicating potential improvements amid economic reforms by the CBN.
The Central Bank of Nigeria (CBN) has reported that the country incurred approximately $5.47 billion in foreign debt service from January 2024 to February 2025. This figure highlights the increasing strain on Nigeria’s revenues, external reserves, and overall fiscal stability. Additionally, foreign exchange direct remittances rose by 1.3 percent year-on-year, totaling $180.03 million in the initial two months of 2025.
As per the data provided by the CBN, the debt service costs reached a high of $854.37 million in May 2024 and exhibited a low of $50.82 million in June 2024. Debt service obligations increased by 1.9 percent to $283.22 million in February compared to March’s $276.17 million. The total debt service cost for the third quarter of 2024 was around N3.57 trillion, reflecting a quarter-on-quarter increase of N60 billion or 1.71 percent from N3.51 trillion in the preceding quarter.
Debt service obligations fluctuated significantly over recent months, witnessing a decline of 22.1 percent to $215.20 million in April 2024, followed by a substantial rise of 297 percent in May, marking it the highest single-month payment. Conversely, obligations fell dramatically by 94 percent in June, then surged to $542.50 million in July, indicating ongoing instability in debt payment patterns.
In August through October, borrowing obligations oscillated, dropping to $279.95 million before rising to $515.81 million in September. Subsequently, they remained steady in October, before decreasing to $232.50 million. By December, payments again ascended to $328.91 million, with notable variability continuing into early 2025.
In terms of foreign exchange inflows, total direct remittances in the first months of 2025 reached $180.03 million, increasing significantly from $177.7 million in the comparable period in 2024. Specifically, while January 2025 witnessed a decrease to $54.44 million compared to January 2024, remittances rebounded in February 2025 to $125.59 million, exhibiting a remarkable growth of 220.8 percent from the previous year’s figure of $39.15 million.
The Central Bank of Nigeria’s disclosures evident a substantial burden from foreign debt service, amounting to $5.47 billion over a fourteen-month span. The fluctuations in debt service payments, alongside a modest increase in foreign remittances, underscore ongoing challenges in Nigeria’s economic landscape. The data reflect the necessity for favorable reforms while illustrating the complexities of managing fiscal obligations and external financial dependencies.
Original Source: www.arise.tv
