External Debt Servicing Gulps $5.2bn in 2025 – Report
Nigeria spent about $5.21bn servicing external debt obligations in 2025, accounting for more than 72 per cent of the country’s total international payments during the year, data obtained from the Central Bank of Nigeria has shown.
Figures published on the CBN website indicated that external debt service rose from $4.66bn in 2024 to $5.21bn in 2025, representing an increase of $551.86m or about 11.9 per cent year-on-year. The increase came even as Nigeria’s overall international payments recorded a marginal decline during the period.
According to the data, total international payments dropped from $7.44bn in 2024 to $7.22bn in 2025, reflecting a reduction of $217.68m or about 2.9 per cent. Despite the fall in total outflows, the proportion of international payments used for debt servicing increased significantly.
The CBN data showed that 72.11 per cent of Nigeria’s international payments in 2025 were devoted to external debt service, compared with 62.58 per cent recorded in 2024.
The figures suggest that nearly three out of every four dollars Nigeria paid externally during the year were used to meet foreign debt obligations, showing the growing burden of debt repayments on the country’s external financial commitments.
A breakdown of the data also showed that the pattern of debt repayments varied widely across the months, reflecting the maturity structure of Nigeria’s external loans.
The highest repayment occurred in November 2025, when the country paid $1.31bn for external debt servicing, while total international payments for the month stood at $1.49bn. This indicates that debt service accounted for almost the entire external outflow recorded during the month.
Another notable repayment period was March 2025, when Nigeria paid $632.36m on external debt servicing out of total international payments of $786.86m. By contrast, some months recorded relatively smaller payments. For instance, the country spent $143.39m servicing external debt in June 2025, one of the lowest figures during the year.
Other repayments included $557.79m in April, $542.70m in September, $302.30m in August, and $179.95m in July, indicating that the repayment obligations were spread unevenly across the year.
The CBN data further showed mixed trends in January 2026, as external debt service declined on a year-on-year basis but increased when compared with the previous month.
In January 2026, Nigeria paid $256.81m to service external debt, while total international payments stood at $405.33m. Compared with January 2025, when the country paid $540.67m in external debt service, the latest figure represents a decline of $283.87m or about 52.5 per cent.
Total international payments also dropped during the same period, falling from $659.67m in January 2025 to $405.33m in January 2026, representing a decrease of $254.34m or 38.6 per cent.
However, the data showed a different trend when compared with the preceding month. External debt service rose from $205.73m in December 2025 to $256.81m in January 2026, representing an increase of about 24.8 per cent.
In contrast, total international payments declined month-on-month from $481.53m in December 2025 to $405.33m in January 2026, a drop of $76.20m or 15.8 per cent.
External debt repayments remained the dominant component of Nigeria’s international payment obligations in January 2026. Based on the figures, debt service accounted for about 63.4 per cent of the country’s total international payments during the month.
Although lower than the 72.11 per cent recorded for the full year 2025, the data still indicates that external debt service continues to account for the largest share of Nigeria’s international financial outflows.
The total figure recorded in 2025 was similar to an earlier projection by Fitch Ratings. In April 2025, the credit rating agency projected that Nigeria’s external debt service would rise to $5.2bn in 2025.
According to Fitch Ratings, government external debt service will increase from $4.7bn in 2024 to $5.2bn in 2025. This includes $4.5bn in amortisation payments and a $1.1bn Eurobond repayment in November 2025.
Fitch noted, “Government external debt service is moderate but expected to rise to $5.2bn in 2025 (with $4.5bn of amortisations, including a $1.1bn Eurobond repayment due in November 2025), from $4.7bn in 2024, and fall to $3.5bn in 2026.”
The agency also cited a minor delay in the payment of a Eurobond coupon due on March 28, 2025, as a reflection of persistent challenges in public finance management.
Although Nigeria’s external debt service remains within manageable levels, Fitch warned that high-interest costs, weak revenue performance, and limited fiscal space remain significant concerns.