Debt Servicing Consumes Over 70% Of Nigeria’s International Payments
Nigeria Allocates $5.2 Billion to External Debt in 2025
NIGERIA spent about $5.21 billion on servicing its external debt obligations in 2025, according to data released by the Central Bank of Nigeria (CBN). This figure accounts for more than 72 per cent of the country’s total international payments during the year, underscoring the growing burden of foreign debt on national finances.
The CBN data indicates that debt service costs rose from $4.66 billion in 2024, an increase of $551.86 million or 11.9 per cent year-on-year. Meanwhile, total international payments fell slightly, from $7.44 billion in 2024 to $7.22 billion in 2025, representing a 2.9 per cent decline.
Despite the overall reduction in outflows, the proportion of funds devoted to external debt grew sharply, highlighting the pressure that debt obligations place on Nigeria’s foreign exchange resources. In 2025, 72.11 per cent of international payments went to debt servicing, up from 62.58 per cent the previous year.
Analysts say this trend reflects the challenges Nigeria faces in balancing debt repayment with other essential international commitments, including imports and foreign investment obligations. The rising share of payments tied to foreign debt signals a tightening fiscal space, raising questions about sustainability and the need for careful management of external borrowing.
