The latest data released by the Central Bank of Nigeria (CBN) reveals that the Nigerian government has spent $2.19 billion to repay foreign debts to countries and financial institutions.

This amount is 90% higher compared to the $1.12 billion recorded in the same period in 2023.

A breakdown of the data showed that the debt service payments were recorded from January to May 2024.

Nigeria repays its debts

According to CBN data analysed by Legit.ng the Tinubu-led administration spent $560.52 million on debt servicing in January 2024, significantly higher than the $112.35 million spent in January 2023.

In February 2024, the amount spent on debt was $283.22 million, nearly the same as the $288.54 million spent in February 2023.

The debt service payment in March 2024 stood at $276.17 million, lower than the $400.47 million spent in March 2023.

Debt repayment continued in April 2024, with the Tinubu government committing $215.2 million to debt service, higher than the $92.85 million spent in April 2023.

The highest debt service payment was recorded in May 2024, amounting to $854.37 million, significantly higher than the $221.05 million spent in May 2023.

More debt to be paid by Nigeria

Nigeria has contracted a number of debt obligations from external sources, some of which are China, the World Bank, the African Development Bank, the Islamic Development Bank, Japan, France, and others.

A check on the Debt Management Office (DMO) data showed that the outstanding total public debt (external and internal) summed up to $108.22 billion or (N97.34trn) as of December 2023.

The external debt makes up $38.21 billion, 39.26%, and domestic debt makes up $59.12 billion, 63.62%.

Nigeria's debts to increase

While Nigeria is repaying some of its old loans, it continues to accumulate new ones. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has announced the approval of two major "financial support packages" by the World Bank, valued at $2.25 billion.

According to a statement released on Thursday, June 13, the new loan is part of President Tinubu’s ongoing efforts to stabilize the economy, reposition it for sustained and inclusive growth, and provide urgent support to the poor and vulnerable.