Nigeria Spends $1.8 Billion on Loan Repayments

Nigeria spent a total of $407.97 million servicing its debt to the International Monetary Fund (IMF) in the fourth quarter of 2024, making the multilateral institution the largest single recipient of the country’s debt service payments within the period.

This was revealed in the latest data released by the Debt Management Office (DMO), which showed that Nigeria’s total external debt servicing costs for the quarter stood at $1.8 billion.

Other multilateral lenders also received significant sums: the International Development Association (IDA) got $116.48 million; the African Development Bank (AfDB) received $43.89 million; the International Bank for Reconstruction and Development (IBRD) got $14.48 million, and the Islamic Development Bank (IsDB) was paid $5.83 million.

Payments to commercial creditors amounted to $430.53 million, with syndicated loans accounting for $280.16 million. Eurobond repayments cost $148.57 million, while smaller amounts went to financial institutions like UniCredit S.P.A ($1.54 million), Standard Chartered Bank ($144,000), and Deutsche Bank AG ($108,000).

Additionally, Nigeria disbursed $46.85 million to bilateral creditors. France’s Agence Française de Développement (AFD) received the highest portion at $33.13 million, followed by Germany’s KfW with $11.84 million and China Development Bank with $1.88 million.

These figures come just days after the DMO disclosed a sharp rise in Nigeria’s external debt stock, which surged by 83.89% — from N38.22 trillion ($42.50 billion) in December 2023 to N70.29 trillion ($45.78 billion) by December 2024.

Despite the growing debt profile, the federal government claims progress in managing its liabilities, with the revenue-to-debt service ratio reportedly falling from 97% to 65% under the current administration.

Data from the Central Bank of Nigeria (CBN) also suggests some relief in early 2025, with debt service payments dropping from $540 million in January to $276 million in February. This decline is attributed to ongoing debt restructuring efforts aimed at improving dollar liquidity and reducing pressure on the foreign exchange market.