Nigeria’s external debt reaches N66.14 trillion in Q3 2024 – CBN 

This disclosure was part of the Fourth Quarter 2024 Economic Report, published on Monday by the apex bank.

The latest figure represents a 0.30% increase from the $42.90 billion recorded in Q2 2024, highlighting a consistent upward trend in Nigeria’s borrowing activity.

On a year-on-year (YoY) basis, Nigeria’s external debt grew by 3.40%, rising from $41.59 billion reported in Q3 2023. This steady increase reflects the nation’s reliance on foreign loans to address fiscal challenges and fund development projects.

A detailed analysis of the external debt stock reveals diverse sources of borrowing.

By the end of September 2024, Nigeria’s external debt service payments stood at $1.34 billion, comprising principal and interest obligations.

Principal repayments, which made up 53.73% of debt service payments, amounted to $0.72 billion; While interest payments, amounted to $0.62 billion, with interest constituting 46.27% of the total payments.

A closer look at interest payments shows Commercial Borrowings accounting for the largest share, $0.44 billion (70.96%).

Multilateral Institutions contributed $0.12 billion (19.35%); While Bilateral Loans represented the remaining balance.

The consistent growth in external debt indicates Nigeria’s increasing reliance on foreign financing, a trend driven by fiscal constraints and development needs.

Experts believe that a combination of higher oil revenues, improved tax collection, and strategic debt restructuring could help sustain lower debt service payments in the coming months.