Nigeria Spends $920m on Foreign Debt in Two Months
Nigeria spent nearly $1 billion servicing foreign loans in the first two months of 2026, according to the Central Bank of Nigeria’s February Economic Report.
The report showed repayments of $440m in January and $480m in February, bringing the total to $920m. Rising capital outflows accompanied the repayments, with total outflows climbing to $2.75bn in February, up from $1.63bn in January.
The CBN said the increase was driven mainly by a 91.5% rise in capital transfers to $2.26bn, while loan repayments also contributed. Dividend repatriation, however, declined during the period.
Debt repayments accounted for nearly one-fifth of total capital outflows, underscoring the growing burden of external debt servicing.
The banking sector made up the largest share of outflows at 46%, followed by finance (26%), oil and gas (16%), and telecoms (3.5%).
Geographically, Lagos accounted for 63% of capital outflows, with the FCT at 37%, while other states contributed marginally.
Despite the repayments, Nigeria’s external position remained strong. Foreign reserves rose to $50.12bn in February, providing 9.6 months of import cover, well above the global benchmark of three months.
The IMF projects Nigeria’s public external debt will rise from $51.9bn in 2025 to $72.6bn by 2027, a 40% increase.
Debt service is expected to consume more than half of government revenue, with interest payments projected to reach $3bn by 2027.
Finance Minister Taiwo Oyedele defended borrowing, saying, “The relevant question is never simply how much debt. It is always debt for what and at what cost, against what return, and repaid on what terms.”
He argued that debt used for productive assets generating returns above cost is rational, not reckless.