The Nigerian government spent about $1.2 billion servicing foreign debts in the first quarter of 2024, showing the rising debt service burden on the country.
According to data from the Central Bank of Nigeria (CBN), debt service payments have risen steadily over the past years.
In the first quarter of 2023, debt service hit $801.36 million and grew by 39.7% in Q1 2024 to $1.12 billion.
A monthly analysis of the debt service payments shows a fluctuating but consistently high expenditure.
In January 2024, Nigeria spent $560.52 million on debt servicing, exceeding the debt servicing expenditure of January 2023.
In February this year, debt servicing moderated at $283.22 million, lower than the January expenditure and the February 2023 figure of $288.54 million.
Nigeria recorded a debt service figure of $276.17 million for March 2024, lower than the $400.47 million used for debt servicing in the same period the previous year.
According to reports, the country spent 70% of its dollar payments on debt service between January and March 2024.
The CBN data reveals that out of the $1.21 billion in total outflows during the period, a considerable amount was channeled to debt servicing.
A previous report by TimesNow.com.ng says Nigeria’s debt stock rose above N97 trillion, with external borrowing accounting for the highest.
Data from the Debt Management Office (DMO) shows Nigeria’s external debt is about $42.495 billion as of December 31, 2023.
Of the entire amount, Nigeria’s debt to China accounts for one of the highest at $5.167 billion, while the World Bank Group accounts for Nigeria’s highest external debt stock at $14.960 billion.
TimesNow.com.ng previously reported that a recent report ranked Nigeria among the countries with the least debt burden in 2024.
Nigeria’s debt-to-GDP ratio is the second lowest in Africa, with an external debt of $41.59 billion or N31.98 trillion as of December 2023.
A recent report indicates that Nigeria is in the bottom 10 of the least indebted African countries going into 2024.
Source: TimesNow.com.ng
