Nigeria Successfully Pays Back China, India, IMF, Others $560m Debt in 2024, More to be Paid

• Data by the CBN has shown that in January 2024, Nigeria paid $560 million to repay debt owed to various countries and organisations
• Analysis showed the amount is greater by 339% compared to the amount spent for the same purpose last year.
• This came amid a report that estimated that Nigeria's total public debt stood at N87.91 trillion as of September 2023

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

In January 2024, the federal government paid $560 million to service the nation's external debt.

Compared to the $112 million paid on debt service in January of 2023, the amount spent in January was 339% greater, according to an analysis of the Central Bank of Nigeria's (CBN) Weekly International Payments.

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Breakdown of debt payment last year

Nigeria paid $3.5 billion in 2023 as repayment for its external debt, a substantial rise above the $2.4 billion spent in 2021.

The monthly analysis of Nigeria's debt service in 2023 shows dynamic patterns that provide insight into the nation's economic climate.

Debt servicing totalled $112 million at the start of the year, while there was a significant increase in February, hitting $288 million.

The debt servicing escalates to $400 million as the pace continues throughout March. Debt servicing records a decrease in April of $93 million but increases in May to $221 million.

The month of July stands out as a peak month, exceeding $641 million, while June exhibits a notable adjustment at $54 million. In August, the amount falls precipitously to $310 million but rises to $439 million in September.

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Reports for October and November show $509 million and $368 million, respectively. After reaching $65 million at year-end adjustments, there is a noticeable decline towards the end of 2023, and in January 2024, there is another big peak of $560 million.

In a recent report, Legit.ng reported that data from the Debt Management Office (DMO) shows that Nigeria's total public debt stands at N87.91 trillion as of September 2023.

The increased debt profile comes four months after President Tinubu and 18 new governors came into office in May 2023.

IMF sends message to CBN on Nigeria's debt

Legit.ng reported that the International Monetary Fund (IMF) has asked the CBN to settle the overdue FX backlog to rebuild trust in the apex bank and the naira.

The organisation disclosed this in its recent Executive Board Post-Financing Assessment with Nigeria report.

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The IMF insisted that paying the CBN's dollar obligations would rebuild confidence in the bank and the Nigerian currency.

Source: Legit.ng