Nigeria Spends $3.5 Billion on Foreign Debt Servicing in Nine Months, Economists Raise Concerns

November 15, 2024

2 minutes read

Foreign Debt

The Central Bank of Nigeria (CBN) has disclosed that the country spent $3.5 billion on foreign debt servicing within the first nine months of 2024. This represents 63.56% of the $5.63 billion Nigeria expended on foreign payments during the period, raising concerns about the nation’s rising debt obligations and its implications for economic stability.

The CBN’s data highlights a significant strain on the nation’s resources as debt servicing continues to consume a substantial portion of foreign payments. Economists and financial analysts have expressed worry about the trend, citing its potential impact on public spending and economic growth.

Economic experts have pointed out that the growing cost of servicing external debts is crowding out critical investments in infrastructure, education, and healthcare. Professor Segun Ajayi of the Nigerian Economic Society warned, “Nigeria’s high debt servicing ratio is unsustainable. It limits the government’s ability to allocate funds to essential sectors and could lead to a fiscal crisis if not addressed.”

According to reports, Nigeria’s total public debt has surged, with a significant portion attributed to external borrowings. The country’s debt-to-GDP ratio remains within the international benchmark, but analysts argue that the rising debt servicing costs could undermine economic progress and worsen fiscal challenges.

In response, financial experts have urged the government to adopt measures to manage the nation’s debt sustainably. Recommended actions include improving revenue generation through taxation, reducing dependency on oil exports, and implementing policies to attract foreign investment.

The Minister of Finance, Wale Edun, assured Nigerians that the government is aware of the situation and is working on strategies to reduce the debt burden. “Our focus is on increasing non-oil revenue streams and ensuring that borrowed funds are used for projects with high economic returns,” he said.

While the government continues to rely on foreign loans to bridge budget deficits and fund critical projects, stakeholders have called for greater transparency and efficiency in managing borrowed funds. They emphasize the need for strategic planning to avoid debt traps and ensure long-term economic sustainability.

Share:
Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Related Links

Stock

Stocks Dip as Trump’s Tax Bill Passes, Focus to July9 Deadline

Global stock markets declined on July 4, 2025, as U.S. President Donald Trump’s sweeping tax-cut ...

OPEC

OPEC+ Considers Larger Oil Output Hike for August

OPEC+, comprising eight key members—Saudi Arabia, Russia, UAE, Kuwait, Oman, Iraq, Kazakhstan, and Algeria, will ...

Angélique Kidjo:First AfricanArtist Honored with Hollywood Walk of Fame

The Beninese music icon and five-time Grammy Award winner Angélique Kidjo has been named a ...

Zambia

Zambia Declares End to Cholera Outbreak

Zambia has officially declared an end to its latest cholera outbreak, marking a significant public ...

Features

Netherlands Returns 119 Looted Benin Bronzes to Nigeria

On Thursday, June 26, 2025, the Netherlands returned 119 looted artifacts, known as the Benin ...

Ngugi-wa-Thiongo

Ngũgĩ wa Thiong’o:Passed the pen to the Next Generation.

Ngũgĩ wa Thiong’o, a legendary Kenyan writer, scholar, and revolutionary voice in African literature passed ...

ECOWAS

ECOWAS Celebrates 50th Anniversary Amid Sahel States Tensions

On May 28, 1975, fifteen West African nations signed the Lagos Treaty, establishing the Economic ...

What Really Moves Bitcoin’s Price? A Comprehensive Guide to the Key Drivers of Volatility and Value

What Really Moves Bitcoin’s Price? A Comprehensive Guide to the Key Drivers of Volatility and Value

​Bitcoin, the pioneering cryptocurrency, has captivated the financial world with its innovative technology and notable ...

Guinea Sets September 2025 Date for Constitutional Referendum as Military Inches Toward Democratic Transition

Guinea Sets September 2025 Date for Constitutional Referendum as Military Inches Toward Democratic Transition

Guinea’s military-led government has officially announced that a national referendum on a new constitution will ...

Ivory Coast economic growth

Côte d’Ivoire’s Economic Boom Faces Political Test in 2025 Election

Ivory Coast’s Economic Success: A Model for West Africa Côte d’Ivoire has emerged as one ...

Phillis Wheatley

Phillis Wheatley: The Trailblazing African American Poet Who Defied Oppression

Phillis Wheatley: A Pioneer in Black Literature and Poetry Phillis Wheatley was a groundbreaking poet ...

Women Participation in Politics

International Women’s Day 2025: Advancing Rights, Equality, and Leadership for African Women

The 2025 International Women’s Day (IWD) theme, “For ALL Women and Girls: Rights. Equality. Empowerment,” ...

Latest News

Today in History

July 7th is the day in 1930 that Industrialist Henry J. Kaiser begins construction of the Boulder Dam (now known as Hoover Dam).

Exchange Rate Per Dollar

AM Armenian Dram384.7644
GH Ghana Cedi10.3561
GM Gambian Dalasi72.2028
GN Guinea Franc8,678.57
NG Nigerian Naira₦1,531.09
CF CFA Franc BEAC557.9774
07 Jul · CurrencyRate · USD
CurrencyRate.Today
Check: 07 Jul 2025 07:05 UTC
Latest change: 07 Jul 2025 07:00 UTC
API: CurrencyRate
Disclaimers. This plugin or website cannot guarantee the accuracy of the exchange rates displayed. You should confirm current rates before making any transactions that could be affected by changes in the exchange rates.
You can install this WP plugin on your website from the WordPress official website: Exchange Rates🚀

YOUR THOUGHTS

Let us know what you think

Contact the People’s Paper with feedback on stories and how we could make wapress.africa even better!

newsletter image

Stay up to date with the latest from West Africa Press

Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on WApress.

Subscribe Newsletter!

Be the first to receive our latest contents and more...

Need help?