Nigeria’s debt servicing payments have surged significantly, reaching N6.04 trillion in the first half of 2024. This represents a 69% increase from N3.58 trillion in the same period of 2023.
According to the Central Bank of Nigeria’s statistical bulletin, debt servicing accounted for 50% of the government’s total expenditure (N12.17 trillion) and 162% of its total revenue (N3.73 trillion) in H1 2024.
The significant rise in debt servicing is largely driven by naira devaluation for foreign debt repayments. This has resulted in growing fiscal stress, with the government allocating a substantial portion of its resources towards debt repayment.
Key highlights include:
- January 2024 debt servicing increased by 37% to N755.9 billion
- March 2024 saw a 12.2% rise to N1.01 trillion
- May 2024 recorded a 332% surge to N2.26 trillion
- June 2024 debt servicing rose by 186% to N689 billion
The World Bank has expressed concerns over escalating debt service costs, warning of a potential widespread financial crisis.
For more information on Nigeria’s debt situation and its economic implications, consider searching online for the latest updates and analyses from reputable financial news sources.
