Nigeria pays $560 million to external creditors - Report

Nigeria paid $560 million in January 2024 to service its external debt.

The amount paid this January is 339% greater than the $112 million paid on debt service in January of 2023, according to ThisDay analysis of the Central Bank of Nigeria's (CBN) Weekly International Payments.

The report further stated that $3.5 billion was paid in 2023 as payment for external debts which is also a substantial rise from the $2.4 billion spent in 2021 by the President Muhammadu Buhari administration.

The monthly analysis of Nigeria's debt service in 2023 speaks to the country's economic climate.

In January, President Bola Tinubu's administration paid a total of $112 million while there was a significant increase in February, hitting $288 million.

The debt servicing escalates to $400 million as the pace continues throughout March. Debt servicing records a decrease in April of $93 million but increases in May to $221 million. July stands out as a peak month, exceeding $641 million, while June exhibits a notable adjustment at $54 million, reports Legit.ng.

In August, the amount falls precipitously to $310 million but rises to $439 million in September. Reports for October and November show $509 million and $368 million, respectively.

After reaching $65 million at year-end adjustments, there is a noticeable decline towards the end of 2023, and in January 2024, there is another peak of $560 million.

In a recent report, Legit.ng reported that data from the Debt Management Office (DMO) shows that Nigeria's total public debt stands at N87.91 trillion as of September 2023.

The increased debt profile comes four months after President Tinubu and 18 new governors came into office in May 2023.