Nigeria’s External Debt Servicing Rises by 38%, Hits $3.53 Billion in First Nine Months of 2024

 

Nigeria's external debt servicing has surged by 38% to $3.53 billion in the first nine months of 2024. This significant increase is a cause for concern, as it may impact the country's economic stability and ability to meet its financial obligations.

To put this into perspective, Nigeria's external debt stock reached $42.9 billion in June 2024, up from $42.1 billion in the previous quarter. This upward trend in external debt servicing and stock may be attributed to various factors, including the country's reliance on foreign loans to finance its development projects and the impact of global economic uncertainties.

The Debt Management Office Nigeria (DMO) provides quarterly updates on the country's external debt service payments. According to the DMO, Nigeria's actual external debt service payments for the second quarter of 2024 were reported in July 2024 ². However, the latest available data on the DMO website only goes up to June 2024.

It's essential for Nigeria to carefully manage its external debt and ensure that it doesn't become a burden on the economy. The government may need to explore alternative financing options and implement strategies to reduce its reliance on foreign loans.