Nigeria’s debt service drops to $276 million in February 2025 – CBN

This is according to the Central Bank of Nigeria (CBN)’s latest data on external sector payments.

This decline comes amid ongoing efforts by the federal government to restructure its debt portfolio, improve dollar liquidity, and ease pressure on the foreign exchange market.

The figures, published on the apex bank’s website, highlight the increasing strain of debt obligations on Nigeria’s external reserves and overall fiscal sustainability.

Analysts suggest that recent debt repayment deferrals and negotiations with multilateral lenders may have contributed to the lower outflows for the month.

While debt service payments declined, Letters of Credit (LCs) rose sharply, indicating increased financing of trade transactions.

The federal government has continued engagements with global lenders and investors to ease Nigeria’s growing debt burden.

The CBN’s monetary policy direction in recent months has focused on stabilizing the naira while balancing external obligations.

According to the Debt Management Office (DMO), Nigeria’s debt servicing payments have surged by 69% in the first half of 2024, reaching N6.04 trillion, up from N3.58 trillion recorded in the same period of 2023.

However, concerns remain over the country’s rising total debt stock and the need for stronger fiscal discipline to prevent excessive borrowing.