External Debt Service Gulps $5.47 Billion in 14 Months Amid Pressures on Revenues, Reserves

*FX direct remittances rise to $180.03m

James Emejo in Abuja and Kayode Tokede in Lagos

The Central Bank of Nigeria (CBN) has disclosed that foreign debt service gulped about $5.47 billion between January 2024 and February 2025, further indicating the increasing burden on the nation’s revenues as well as pressures on external reserves and fiscal stability.
This is as the total foreign exchange direct remittances increased by 1.3 per cent Year-on-Year (YoY) to $180.03 million in the first two months of 2025, according to data from the apex bank.
According to the CBN, debt service however, moderated to $854.37 million in May 2024, the highest outflow in the review period, and $50.82 million in June 2024, the lowest monthly payment.
The figures obtained from the bank’s website showed that debt service obligations increased by 1.9 per cent to $283.22 million in February compared to $276.17 million in March.
Meanwhile, total debt service cost for Q3 2024 stood at about N3.57 trillion marking a quarter-on-quarter increase of N60 billion or 1.71 per cent from N3.51 trillion in Q2.
Debt service obligations dropped by 22.1 per cent to $215.20 million in April 2024 but increased by 297 per cent in May to $854.37 million – the highest single-month payment.
Furthermore, debt service obligations dropped by 94 per cent to $50.82 million in June, the lowest in the review period, and rose by 967.4 per cent to $542.50 million in July.
Borrowing obligations also dropped by 48.4 per cent to $279.95 million in August, before increasing by 84.2 per cent to $515.81 million in September.
Debt service remained unchanged in October, following a 0.01 per cent increase to $515.86 million, the CBN added.
The figure declined by 54.9 per cent to $232.50 million in October and rose by 41.4 per cent to $328.91 million in December.
In January 2025, payments rose by 64.4 per cent to $540.67 million and slumped by 48.8 per cent to $276.73 million in February 2025.
The fluctuation in debt service payments further buttresses continued pressure on the country’s FX reserves.
However, total debt service costs, including external and domestic obligations, rose in the third quarter of 2024, reflecting the combined impact of increased external debt service payments and currency depreciation.

FX Direct Remittances Rise to $180.03m

Meanwhile, the total foreign exchange direct remittances increased by 1.3 per cent Year-on-Year (YoY) to $180.03 million in the first two months of 2025, according to data from the apex bank.
According to the CBN “International Payments” data, total foreign exchange direct remittances in the first two months of 2024 were $177.7 million.
The Month-on-Month (MoM) breakdown showed that total direct remittances stood at $54.44 million in January 2025, down from $138.56 million in January 2024. 
However, in February 2025, it increased significantly to $125.59 million, representing a growth of 220.8 per cent from the $39.15 million reported by CBN in February 2024. 
THISDAY gathered that total foreign exchange direct remittances closed 2024 at $1.91 billion, a decline of 3.5 per cent from $1.98 billion reported by the CBN in 2023. 
While there were concerns over the decline in total remittances to the country in 2024, despite the surge in the number of Nigerians relocating abroad, the inflow in the first two months of 2025 has shown signs that reforms by the CBN are working

​ 

  • Related Posts

    VIDEO: Asake reconciles with father, promises to purchase house, cover medical bills

    Nigerian music star Ahmed Ololade, popularly known as Asake, has promised to purchase a house for his father, Fatai Odunsi, and cover his medical expenses. This comes just days after Odunsi publicly accused Asake of abandoning him since his health started declining in 2022. Odunsi, who has been battling stroke, alleged that despite Asake’s fame
    Read More

    Nigerian music star Ahmed Ololade, popularly known as Asake, has promised to purchase a house for his father, Fatai Odunsi, and cover his medical expenses. This comes just days after Odunsi publicly accused Asake of abandoning him since his health started declining in 2022. Odunsi, who has been battling stroke, alleged that despite Asake’s fame

    Read More

    Kukah hails Soludo, says governance not about competition

    The Catholic Bishop of Sokoto Diocese, Bishop Matthew Kukah, has commended the Anambra State governor, Prof. Chukwuma Soludo, for his leadership style, describing the administration’s progress and achievements as testaments to the trust Anambra residents have placed in it. Kukah stated this during the thanksgiving mass celebration to mark Soludo’s three years in office as
    Read More

    The Catholic Bishop of Sokoto Diocese, Bishop Matthew Kukah, has commended the Anambra State governor, Prof. Chukwuma Soludo, for his leadership style, describing the administration’s progress and achievements as testaments to the trust Anambra residents have placed in it. Kukah stated this during the thanksgiving mass celebration to mark Soludo’s three years in office as

    Read More

    Leave a Reply

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    You Missed

    Corpse dumped at Osun bus stop causes panic

    Police nab two suspected motorcycle robbers in Jigawa

    David Ornstein confirms Arsenal duo are likely to depart

    Tanker drivers shut down highway over alleged killing of colleague in Plateau