Nigeria’s external debt servicing rose by 55% to $3.5bn in 2023

Nigeria’s external debt servicing hit $3.5 billion in the fiscal year that ended December 31, 2023, according to data from the Central Bank of Nigeria (CBN).

The data is contained in the latest CBN’s Quarterly Statistical Bulletin which showed that the $3.5 billion spent represents a 55 percent increase from the $2.6 billion incurred in 2022 external debt servicing.

Data from the Debt Management Office (DMO) indicates Nigeria has a total external debt portfolio of $42.29 billion up from $41.69 billion in 2022.

According to the data published by the apex bank, Nigeria incurred debt servicing of $801.36 million, $368.26 million, $1,390.72 million and $943.17 million in the first, second, third and fourth quarters respectively.

This substantial increase in debt servicing demands a large portion of Nigeria’s annual budget, restricting government spending in critical sectors such as health, education, road and fighting insecurity.

It also risks the nation’s economic growth and may deter foreign investment, essential for economic stability.

Nigeria’s external debt, mostly denominated in dollars, has been rising in recent years as the country faced external and internal economic headwinds.