By Seun Ibiyemi
Nigeria spent a total of $5.21 billion on servicing external debt in 2025, accounting for more than 72 per cent of the country’s total international payments, according to data released by the Central Bank of Nigeria (CBN).
Figures published on the apex bank’s website show that external debt service payments rose from $4.66 billion in 2024 to $5.21 billion in 2025, representing an increase of $551.86 million or 11.9 per cent year-on-year.
The increase came despite a slight decline in Nigeria’s overall international payments during the same period. Total international payments dropped from $7.44 billion in 2024 to $7.22 billion in 2025, reflecting a reduction of $217.68 million or 2.9 per cent.
However, the proportion of international payments devoted to debt servicing rose significantly. CBN data indicates that 72.11 per cent of Nigeria’s international payments in 2025 were used to service external debt, compared with 62.58 per cent in 2024.
This means that nearly three out of every four dollars Nigeria paid externally last year went toward meeting foreign debt obligations, highlighting the growing burden of debt repayments on the country’s external finances.
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Monthly data show that external debt service payments were uneven throughout the year, largely reflecting the maturity structure of Nigeria’s external loans.
The highest repayment occurred in November 2025, when the country spent $1.31 billion on external debt servicing. Total international payments for that month stood at $1.49 billion, indicating that debt repayments accounted for nearly all external outflows during the period.
Another major repayment was recorded in March 2025, when Nigeria paid $632.36 million in external debt service out of total international payments of $786.86 million.
In contrast, some months recorded significantly lower repayments.
For instance, the country paid $143.39 million in June 2025, one of the lowest debt service figures during the year.
Other monthly repayments included $557.79 million in April, $542.70 million in September, $302.30 million in August, and $179.95 million in July, underscoring the irregular distribution of repayment obligations across the year.
Meanwhile, data for January 2026 shows mixed trends, with external debt service declining sharply on a year-on-year basis but rising compared with the previous month.
Nigeria paid $256.81 million in external debt service in January 2026, while total international payments stood at $405.33 million.
Compared with January 2025, when the country spent $540.67 million on external debt servicing, the latest figure represents a year-on-year decline of $283.87 million or about 52.5 per cent.
Total international payments also dropped from $659.67 million in January 2025 to $405.33 million in January 2026, indicating a decline of $254.34 million or 38.6 per cent.
However, on a month-on-month basis, external debt service rose from $205.73 million recorded in December 2025 to $256.81 million in January 2026, representing a 24.8 per cent increase.
During the same period, total international payments declined from $481.53 million in December 2025 to $405.33 million in January 2026, a drop of $76.20 million or 15.8 per cent.
Despite the variations, external debt repayments remained the dominant component of Nigeria’s international payments in January 2026, accounting for about 63.4 per cent of total external outflows during the month.
