…The persistently high ratio of debt service to total payments underscores Nigeria’s external vulnerability and pressure on foreign reserves.
MON OCT 06 2025-theGBJournal| Nigeria spent a total of $2.86 billion servicing external debt in the first eight months of 2025, representing 69.1 percent of total foreign payments of $4.14 billion, according to data from the Central Bank of Nigeria (CBN).
Although this marks a $198 million drop from the $3.06 billion recorded in the same period of 2024, debt service continues to account for nearly seven out of every ten dollars leaving the country.
The monthly pattern reflected significant volatility in repayment flows. Debt service payments surged to $632.36 million in March and $557.79 million in April, before dropping sharply to $230.92 million in May and $143.39 million in June, the lowest so far in 2025.
After slight rebounds in July ($179.95 million) and August ($302.3 million), the data underscore Nigeria’s uneven external obligations profile, with large spikes tied to amortisation and interest schedules.
Despite lower aggregate outflows, ”the persistently high ratio of debt service to total payments underscores Nigeria’s external vulnerability and pressure on foreign reserves,” says Comercio Partners analysts
Comercio Partners said the heavy allocation of FX to debt repayments limits funding for critical imports, investment inflows, and fiscal flexibility.
Overall, Nigeria’s debt service trajectory signals ongoing liquidity and fiscal pressures, with rising interest costs, weak revenue mobilisation, and high repayment obligations posing significant risks to macroeconomic stability and external sustainability.
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