SAT OCT 04 2025-theGBJournal| International payments facilitated by the Central Bank of Nigeria (CBN) declined by 14.3% y/y to US$4.14 billion in 8M-25 (8M-24: US$4.83 billion).
The decline is attributed to the decrease in foreign debt service payments (69.2% of total international payments) and direct remittances (16.2% of total international payments).
Specifically, debt service payments declined by 6.5% y/y to US$2.86 billion (8M-24: US$3.06 billion).
Similarly, total direct remittances declined by 48.9% y/y to US$671.86 million (8M-24: US$1.32 billion), due to lower payments for international services by Nigerian residents.
However, letters of credit increased by 33.3% y/y to US$605.01 million (8M-24: USD453.91 million), partly due to improved FX availability.
Looking ahead, international payments are expected to rise in the short term, driven mainly by the FG’s debt obligations, particularly the refinancing of the USD1.20 billion 2025 Eurobond in November and other servicing commitments.
Furthermore, improved FX liquidity, alongside rising goods imports supported by better macroeconomic conditions and a stronger naira, is expected to bolster payments for letters of credit and direct remittances.
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