The Central Bank of Nigeria reported a foreign debt servicing cost of $5.47 billion from January 2024 to February 2025. Additionally, foreign direct remittances increased by 1.3% to $180.03 million in early 2025. Despite fluctuations in debt service payments, total remittances for 2024 declined slightly, indicating mixed trends in foreign financial flows to Nigeria.
The Central Bank of Nigeria (CBN) recently reported that the country spent approximately $5.47 billion on foreign debt servicing from January 2024 to February 2025. This expenditure highlights the escalating pressure on Nigeria’s revenue, external reserves, and overall fiscal sustainability. Additionally, the CBN noted a modest Year-on-Year increase in foreign direct remittances, reaching $180.03 million in the first two months of 2025.
The data from CBN indicates that debt service peaked at $854.37 million in May 2024, while June 2024 recorded the lowest outflow at $50.82 million. Furthermore, debt service obligations rose by 1.9 percent in February 2025, reaching $283.22 million compared to March’s $276.17 million. The total cost of debt service for the third quarter of 2024 was approximately N3.57 trillion, with a quarter-on-quarter increase of 1.71 percent from N3.51 trillion in the previous quarter.
While there were fluctuations in debt service payments, including a notable decrease of 22.1 percent to $215.20 million in April 2024, the following month saw a surge of 297 percent to $854.37 million. By June, obligations fell to $50.82 million before rising again to $542.50 million in July. Additional analysis indicates a drop in borrowing obligations by 48.4 percent to $279.95 million in August, followed by an increase of 84.2 percent to $515.81 million in September.
Debt service activity remained relatively stable in October, while the figures fluctuated again with a decline of 54.9 percent to $232.50 million in October and an increase to $328.91 million in December. The payment in January 2025 was $540.67 million, followed by a decrease to $276.73 million in February, reflecting ongoing pressures on the nation’s foreign exchange reserves.
Concerning foreign direct remittances, the first two months of 2025 saw a 1.3 percent Year-on-Year increase to $180.03 million, compared to $177.7 million in the same period of 2024. Month-on-Month data revealed a decline to $54.44 million in January 2025 but rebounded dramatically to $125.59 million in February, marking a 220.8 percent increase from February 2024. The total remittances for 2024 stood at $1.91 billion, indicating a slight decrease from $1.98 billion in 2023. Despite concerns regarding reduced remittance levels amid increased emigration, the early 2025 inflow suggests that recent CBN reforms may be yielding positive results.
In summary, the financial disclosures from the Central Bank of Nigeria illustrate the significant burdens posed by foreign debt servicing, which amounted to $5.47 billion over a 14-month span. While direct remittances showed a slight increase, the fluctuating nature of debt repayments underlines persistent challenges facing Nigeria’s fiscal landscape. Continued monitoring and reform initiatives from the CBN will be crucial in efforts to stabilize the economy and enhance foreign exchange reserves.
Original Source: www.arise.tv
