Nigeria's Debt Service Gulped $854m in May, Highest in Four-Years

10 June 2024
This Day (Lagos)
By Nume Ekeghe

Data obtained from the Central Bank of Nigeria (CBN), has reveals that Nigeria's external debt service payments in May 2024 amounted to $854 million, the highest monthly debt service payment in four years.

The previous significant high was recorded in February 2020, with debt service payments totalling $4.43 billion.

This remains the highest figure in the historical data provided by the CBN, which dates back to October 12, 2003. The second highest was $1.52 billion; recorded on November 10, 2006, before the recent $854 million payment in May 2024 took the third spot.

A month-to-month breakdown of Nigeria's debt servicing for 2024 showed that in January, the debt service payment was $560 million.

February saw a decrease to $283 million. March recorded a slightly lower figure of $276 million, while April's payment dropped further to $215 million. However, May experienced a significant spike with a payment of $854 million. This brings the cumulative total for the first five months of 2024 to $2.19 billion.

A retrospective look at 2023 reveals dynamic trends in Nigeria's debt servicing, revealing that the year commenced with debt servicing at $112 million. A substantial leap occurred in February, reaching $288 million, reflecting the country's fluctuating financial commitments.

The momentum continued into March, with debt servicing escalating to $400 million. April, however, experienced a dip, recording a payment of $93 million. Debt servicing rebounded in May, totalling $221 million, indicating the cyclical nature of Nigeria's debt obligations.

June reflected a noticeable adjustment at $54 million, representing a low point for the year. However, July stood out as a peak month, hitting $641 million, the highest for 2023.

A significant decline followed in August, with debt servicing plummeting to $310 million. September saw an increase, climbing to $439 million, as the country continued to navigate its fiscal responsibilities.

October recorded $509 million in debt service payments, followed by a decrease in November to $368 million. The year 2023 concluded with a notable decrease in December, reaching $65 million.

Read the original article on This Day.

Tagged:
Copyright © 2024 This Day. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 600 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.