According to the most recent international payment data released by the Central Bank of Nigeria (CBN), the Federal Government paid 50% more for external debt servicing annually.
In contrast to the $ 1.33 billion recorded during the same time period in 2024, the data shows that Nigeria repaid its external debt by about $ 2.01 billion between January and April 2025.
Debt servicing alone made up 77% of Nigeria’s total international payments in the first four months, a significant increase from the 64.5 percent share recorded in the same period in 2024.
As of April 2025, the nation’s total international payments, which included debt service, remittances, and letters of credit, increased to $ 2.07 billion from $ 2.07bn from the previous period of 2024.
During the review period, Nigeria’s foreign exchange reserves reportedly decreased by about $3 billion.
On a month-to-month basis, Nigeria paid $540.67m in January 2025 from $560.52m recorded in January 2024.
In February, the figure stood at $276.73m, almost unchanged from the $283.22m paid in February 2024.
However, the cost of debt increased by $ 623.2 million in March, more than double the $ 76.17 million that was paid the same month last year.
The upward trend continued in April, with a further $557.79 million repaid, a 159 percent increase over the $ 215.20 million paid in April 2024.
According to the data, the nation repaid nearly $1.2 billion in debt in March and April alone.
The International Monetary Fund (IMF) has confirmed that Nigeria has fully repaid the $3.4 billion in funding provided by the Rapid Financing Instrument to mitigate the COVID-19 pandemic’s economic effects. In contrast to traditional IMF programs, the loan was one of the largest disbursements under the Rapid Financing Instrument on a global scale.
The Fund claimed that Christian Ebeke, the IMF’s résident representative for Nigeria, was responsible for the payment as of April 30th, 2025.
According to the IMF, “Nigeria has fully repaid the financial support of about $3.4 billion it requested and received in April 2020 from the International Monetary Fund in order to help alleviate the effects of the COVID-19 pandemic and the sharp decline in oil prices.”
The loan, which was approved in April 2020, was intended to assist Nigeria in reversing the effects of the pandemic, including the sharp drop in oil prices, economic contraction, and fiscal pressures.
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Nigeria will continue to pay additional annual fees over the next few years in addition to the full payment of the principal due to the approximately $30 million Special Drawing Rights charges.
Source: Channels TV
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