Nigeria TV Info 

Nigeria’s Eight-Month Debt Service Bill Hits $2.86 Billion — CBN

Abuja, Nigeria — Nigeria has spent US $2.86 billion servicing external debt in the first eight months of 2025, the Central Bank of Nigeria (CBN) has revealed.

This figure represents nearly 70 percent of the country’s total foreign payments during the period. The high burden of debt servicing is placing pressure on Nigeria’s foreign reserves as well as its ability to fund other developmental priorities.

Key Issues & Implications

• Foreign payment composition: The external debt service is consuming a large share of Nigeria’s foreign exchange outflows, leaving less room for essential imports, infrastructure financing, and exchange rate stability.
• Debt sustainability concerns: Heavy servicing payments could raise questions about the sustainability of Nigeria’s external debt and the risk of liquidity constraints if global interest rates or exchange rate pressures worsen.
• Fiscal trade-offs: The government may have to redirect revenues and reserves towards debt obligations at the expense of social spending, capital projects, and other critical investments.
• Policy response needed: Analysts and stakeholders are likely to call for stronger revenue mobilisation, debt restructuring, and tighter fiscal discipline to contain further escalation.

Context & Background

• Nigeria’s debt burden has been a persistent challenge. The government has, in recent years, issued Eurobonds, diaspora bonds, and relied on bilateral and multilateral loans to fund budget deficits and infrastructure projects.
• External debt servicing often competes with domestic obligations, such as salary payments, health, education, and security funding.
• The CBN and the government will need to coordinate policy responses—such as negotiating better debt terms, ramping up exports or non-oil revenues, and managing the naira exchange rate carefully.