Finance & EconomyNews

Nigeria’s Debt Service Gulped $854m in May, Highest in Four-years

Data obtained from the Central Bank of Nigeria (CBN), has reveals that Nigeria’s external debt service payments in May 2024 amounted to $854 million, the highest monthly debt service payment in four years.

The previous significant high was recorded in February 2020, with debt service payments totalling $4.43 billion.

This remains the highest figure in the historical data provided by the CBN, which dates back to October 12, 2003. The second highest was $1.52 billion; recorded on November 10, 2006, before the recent $854 million payment in May 2024 took the third spot.

A month-to-month breakdown of Nigeria’s debt servicing for 2024 showed that in January, the debt service payment was $560 million.

February saw a decrease to $283 million. March recorded a slightly lower figure of $276 million, while April’s payment dropped further to $215 million. However, May experienced a significant spike with a payment of $854 million. This brings the cumulative total for the first five months of 2024 to $2.19 billion.

A retrospective look at 2023 reveals dynamic trends in Nigeria’s debt servicing, revealing that the year commenced with debt servicing at $112 million. A substantial leap occurred in February, reaching $288 million, reflecting the country’s fluctuating financial commitments.

The momentum continued into March, with debt servicing escalating to $400 million. April, however, experienced a dip, recording a payment of $93 million. Debt servicing rebounded in May, totalling $221 million, indicating the cyclical nature of Nigeria’s debt obligations.

June reflected a noticeable adjustment at $54 million, representing a low point for the year. However, July stood out as a peak month, hitting $641 million, the highest for 2023.

A significant decline followed in August, with debt servicing plummeting to $310 million. September saw an increase, climbing to $439 million, as the country continued to navigate its fiscal responsibilities.

October recorded $509 million in debt service payments, followed by a decrease in November to $368 million. The year 2023 concluded with a notable decrease in December, reaching $65 million

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