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Nigeria’s external debt service obligations surged to $1.08 billion in the fourth quarter of 2024 and marked a significant increase from the previous quarter, according to the latest data released by the Debt Management Office (DMO).
Before now, Nigeria’s total debt service costs climbed to N3.57 trillion in Q3 2024, which reflected a rise of N60 billion or 1.71 per cent from N3.51 trillion in Q2.
The breakdown of external debt service payments by creditor category shows that multilateral loans took the largest share, followed by commercial and bilateral loans. In total, Nigeria paid $600.71 million to multilateral creditors, which represented 55.7 per cent of the total debt service. The International Monetary Fund (IMF) was the largest recipient, receiving $407.97 million, the highest payment to any creditor.
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Other multilateral creditors included the International Development Association (IDA) at $116.48 million, the African Development Bank (AfDB) at $43.89 million, the International Bank for Reconstruction and Development (IBRD) at $14.48 million, and the Islamic Development Bank (IsDB) at $5.83 million.
Commercial creditors absorbed $430.53 million, or 39.9 per cent of the total debt service. Eurobond debt alone accounted for $148.57 million, while $280.16 million went towards syndicated loans, making up the bulk of commercial debt repayments. Smaller payments were made to UniCredit S.P.A ($1.54 million), Standard Chartered Bank ($144k), and Deutsche Bank AG ($108k). Debt service to bilateral creditors stood at $46.85 million, or 4.3 per cent of the total. The majority of these payments were made to France’s Agence Française de Développement (AFD), which received $33.13 million, followed by Germany’s KfW at $11.84 million, and China Development Bank at $1.88 million. Notably, there were no debt service payments recorded for Japan, China Exim Bank, or India Exim Bank during the quarter.
This rise in external debt service obligations comes amid growing concerns about Nigeria’s debt sustainability, the volatility of the exchange rate, and the pressure on foreign reserves. The substantial payments to multilateral and commercial creditors—especially the IMF and Eurobond holders—underscore the burden of non-concessional financing on the country’s external debt commitments.
