The Central Bank of Nigeria (CBN) has revealed that the country spent a total of $2.19 billion on external debt servicing in the first five months of 2024.
According to the CBN data, the debt service payments were made to various countries and financial institutions, including China, the World Bank, the African Development Bank, the Islamic Development Bank, Japan, and France.
The data shows a significant increase of 90% compared to the same period in 2023, with the highest payment of $854.37 million recorded in May 2024.
The Nigerian government’s total public debt stands at $108.22 billion or N97.34 trillion, comprising $38.21 billion (39.26%) external debt and $59.12 billion (63.62%) domestic debt, as of December 2023.
Despite the increasing debt servicing burden, the International Monetary Fund (IMF) has stated that Nigeria’s debt profile is manageable and does not pose an immediate risk to the economy.
The Nigerian government has secured a new loan of $2.25 billion from the World Bank to support economic stabilization, growth, and social support for the vulnerable.
The country’s debt servicing payments for the period are as follows:
January 2024: $560.52 million
February 2024: $283.22 million
March 2024: $276.17 million
April 2024: $215.2 million
May 2024: $854.37 million
This development comes as the country continues to grapple with economic challenges, including a high inflation rate and a large budget deficit.
The government has assured citizens that the new loan will be used to stimulate economic growth and improve the lives of Nigerians.
