See how much Nigeria spent on debt servicing in 2024

• The Nigerian government has spent over N6 trillion on debt repayment in 2024
• The amount exceeds the debt service of 2023 N3.58 trillion, representing a 69% increase
• Experts say the debt servicing in the period shows Nigeria’s rising fiscal vulnerability

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Nigeria’s debt servicing payments have increased by 69% in the first half of 2024, hitting about N6.04 trillion, from N3.58 trillion recorded in the same period in 2023.

The rise in debt service payments, caused by the naira’s devaluation for foreign debt repayments, shows the growing burden on the Nigerian government as debt repayment gulps a large chunk of its financial resources.

President Bola Tinubu's government services debts with N6.04 trillion in 2024 Credit: State House
Source: Getty Images

Breakdown of debt servicing in 2024

Data from the Central Bank of Nigeria (CBN) shows that debt service in the first half of 2024 made up 50% of the government’s total expenditure of N2.17 trillion and a staggering 162% of the N3.73 trillion total revenue generated in the period under review.

An analysis of the debt service shows that in January 2023, the government spent N550.3 billion servicing external debts. However, by January 2024, the figure rose to N755.9 billion, a 37% jump.

The Nigerian government spent N505.9 billion on debt service in the same period in 2024, compared to N518.7 billion in 2023, representing a 2.5% decline in the amount used for debt servicing.

Debt servicing gulped N1.01 trillion in March 2024, relative to the N897.9 billion used in the same period in 2023. The amount represents a 12.2% yearly increase.

In April 2024, the government spent N821 billion on debt service, compared to the N897.9 billion spent in the same period in 2023, representing a 3.2% drop.

May 2024 witnessed a dramatic rise in debt services, gulping a whopping N2.26 trillion, representing a staggering rise from the N523.8 billion recorded in the same period in 2023.

The surge represented a 332% increase, showing the growing weight of debt repayments due to large principal repayments.

In June this year, debt service soared to about N689 billion from N241.3 billion in 2023, showing a 186% spike.

Nigeria’s debt profile hits N121 trillion under Tinubu

Experts say the debt servicing in the period shows Nigeria’s rising fiscal vulnerability, with more funds being spent on debt repayments than on critical infrastructure.

Recently, the World Bank approved another $1.5 billion loan for two projects for Nigeria in addition to the $2.5 billion it granted the country in June this year.

Legit.ng reported that the Nigerian government borrowed over $6 billion under President Bola Tinubu, bringing the country’s total debt above N121 trillion.

Nigeria not among top 10 African countries with lowest debt to IMF

Legit.ng earlier reported that data from the Debt Management Office (DMO) shows that Nigeria’s debt to the IMF stands at $2,032 billion as of March 2024.

According to the data, Nigeria is more indebted to the World Bank Group than any creditor, with a total outstanding debt of $15.102 billion as of March 2024.

The bank recently approved another $1.57 billion loan for two projects in the country in addition to the $2.5 billion approved in June this year.

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Source: Legit.ng