By Teddy Nwanunobi
Federal Government spent about $5.21 billion servicing external debt obligations in 2025, according to a Central Bank of Nigeria, CBN, data.
The amount represents more than 72% of Nigeria’s total international payments during the year.
External debt service, according to figures published on the CBN website rose from $4.66 billion in 2024 to $5.21 billion in 2025, which represents an increase of $551.86 million or aboutyear-on-year.
The increase came even as Nigeria’s overall international payments recorded a marginal decline during the period.
The total international payments dropped from $7.44 billion in 2024 to $7.22 billion in 2025, reflecting a reduction of $217.68 million or about 2.9%.
Despite the fall in total outflows, the proportion of international payments used for debt servicing increased significantly.
The CBN data showed that 72.11% of Nigeria’s international payments in 2025 were devoted to external debt service, compared with 62.58% recorded in 2024.
The figures suggest that nearly three out of every four dollars Nigeria paid externally during the year were used to meet foreign debt obligations, showing the growing burden of debt repayments on the country’s external financial commitments.
A breakdown of the data also showed that the pattern of debt repayments varied widely across the months, reflecting the maturity structure of Nigeria’s external loans.
The highest repayment occurred in November 2025, when the country paid $131 billion for external debt servicing, while total international payments for the month stood at $1.49 billion, which indicates that debt service accounted for almost the entire external outflow recorded during the month.
Another notable repayment period was March 2025, when Nigeria paid $632.36 million on external debt servicing out of total international payments of $786.86 million.
By contrast, some months recorded relatively smaller payments. For instance, the country spent $143.39 million servicing external debt in June 2025, one of the lowest figures during the year.
Other repayments included $557.79 million in April, $542.70 million in September, $302.30 million in August, and $179.95 million in July, indicating that the repayment obligations were spread unevenly across the year.
The CBN data further showed mixed trends in January 2026, as external debt service declined on a year-on-year basis but increased when compared with the previous month.
In January 2026, Nigeria paid $256.81 million to service external debt, while total international payments stood at $405.33 million . Compared with January 2025, when the country paid $540.67 million in external debt service, the latest figure represents a decline of $283.87 million or about 52.5_.
Total international payments also dropped during the same period, falling from $659.67 million in January 2025 to $405.33 million in January 2026, representing a decrease of $254.34 million or 38.6%
However, the data showed a different trend when compared with the preceding month. External debt service rose from $205.73 million in December 2025 to $256.81 million in January 2026, representing an increase of about 24.8 per cent.
In contrast, total international payments declined month-on-month from $481.53 million in December 2025 to $405.33 million in January 2026, a drop of $76.20 million or 15.8%..
External debt repayments remained the dominant component of Nigeria’s international payment obligations in January 2026. Based on the figures, debt service accounted for about 63.4 per cent of the country’s total international payments during the month.
Although lower than the 72.11 per cent recorded for the full year 2025, the data still indicates that external debt service continues to account for the largest share of Nigeria’s international financial outflows.
The total figure recorded in 2025 was similar to an earlier projection by Fitch Ratings. In April 2025, the credit rating agency projected that Nigeria’s external debt service would rise to $5.2 billion in 2025.
According to Fitch Ratings, government external debt service will increase from $4.7 billion in 2024 to $5.2 billion in 2025. This includes $4.5bn in amortisation payments and a $1.1 billion Eurobond repayment in November 2025.
“Government external debt service is moderate but expected to rise to $5.2 billion in 2025 (with $4.5 billion of amortisations, including a $1.1 billion Eurobond repayment due in November 2025), from $4.7 billion in 2024, and fall to $3.5 billion in 2026″, Fitch noted.
The agency also cited a minor delay in the payment of a Eurobond coupon due on March 28, 2025, as a reflection of persistent challenges in public finance management.
Although Nigeria’s external debt service remains within manageable levels, Fitch warned that high-interest costs, weak revenue performance, and limited fiscal space remain significant concerns.
