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.
According to Thisday report, the 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.
