The Federal Government increased its external debt servicing payments by 50% year-on-year, according to the latest international payments data released by the Central Bank of Nigeria (CBN).
Between January and April 2025, Nigeria spent approximately $2.01 billion on external debt servicing, up from $1.33 billion during the same period in 2024. Debt servicing accounted for 77.1% of the country’s total international payments in the four-month period, a notable rise from the 64.5% share recorded in the corresponding period of 2024.
Total international payments—including debt service, remittances, and letters of credit—rose to $2.60 billion as of April 2025, compared to $2.07 billion in the same period last year. Meanwhile, Nigeria’s foreign reserves reportedly declined by about $3 billion over the review period.
On a monthly basis, the debt service profile showed fluctuations. In January 2025, $540.67 million was paid—slightly down from $560.52 million in January 2024. February saw a marginal decline to $276.73 million from $283.22 million the previous year.
However, a significant jump occurred in March, with debt servicing rising to $632.36 million—more than double the $276.17 million recorded in March 2024. The upward trend continued in April, reaching $557.79 million, a 159% increase over the $215.20 million paid in April 2024. Nearly $1.2 billion was spent on debt repayment in March and April alone.
The surge comes as the International Monetary Fund (IMF) confirmed that Nigeria has fully repaid the $3.4 billion it received in 2020 under the Rapid Financing Instrument (RFI). This facility was provided to cushion the economic impact of the COVID-19 pandemic and the sharp drop in oil prices. The IMF described it as one of the largest RFI disbursements globally, with more favourable terms than standard IMF programs.
In a statement on behalf of IMF Resident Representative Christian Ebeke, the Fund announced that repayment was completed as of April 30, 2025.
“As of April 30, 2025, Nigeria has fully repaid the financial support of about $3.4 billion received under the Rapid Financing Instrument,” the IMF stated, adding that the facility had played a critical role in helping Nigeria navigate the economic fallout of the pandemic.
Despite repaying the principal, Nigeria will continue to incur annual charges of around $30 million related to Special Drawing Rights (SDRs). These fees are linked to the difference between Nigeria’s current SDR holdings of SDR 3,164 million ($4.3 billion) and its total allocation of SDR 4,027 million ($5.5 billion). The charges, based on the SDR interest rate—which is updated weekly—will continue until Nigeria’s holdings are aligned with its allocation, according to the IMF.
