Nigeria’s debt service payments have surged by 49.2 per cent year-on-year to $2.01 billion between January and April 2025, compared to $1.34 billion in the same period last year.
This was disclosed by the Central Bank of Nigeria (CBN) in its latest International Payments data.
The increase underscores the growing pressure on the country to meet external debt obligations amid persistent forex shortages and weak revenue inflows.
The development aligns with earlier warnings by the International Monetary Fund (IMF), which flagged Nigeria’s fiscal sustainability as being at risk due to widening deficits and dwindling earnings.
According to the IMF, Nigeria’s fiscal deficit is projected to deepen, with government spending expected to exceed revenue by 4.5 per cent in both 2025 and 2026.
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This is worse than 2024, when the overall deficit stood at -3.4 per cent of Gross Domestic Product (GDP).
The overall balance—calculated as total government revenue minus total expenditure—has continued on a downward trend, indicating that the government may resort to further borrowing.
Economic analysts have warned that a sustained and growing fiscal deficit will likely increase the country’s debt burden and worsen public finance stress, especially with high interest rates and declining investor confidence.
They noted that if the situation remains unchecked, it could make debt servicing even more expensive and weaken Nigeria’s economic stability.
Titilope Adako is a talented and intrepid journalist, dedicated to shedding light on the untold stories of Osun State and Nigeria. Through incisive reporting, she tackles a broad spectrum of topics, from politics and social justice to culture and entertainment, with a commitment to accuracy, empathy, and inspiring positive change.
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