NIGERIA SPENDS NEARLY $1BN ON FOREIGN DEBT SERVICING IN TWO MONTHS

Nigeria’s foreign debt servicing obligations consumed almost $1 billion within the first two months of the year, according to recent official data, highlighting the growing burden of external borrowings on the country’s finances.

The significant outflow reflects increased repayment schedules on multilateral and bilateral loans, as well as the impact of exchange rate movements on dollar-denominated obligations. Analysts noted that while some of the debt was incurred for critical infrastructure projects, the rising servicing cost is putting pressure on foreign reserves and fiscal space.

Economists have called for prudent debt management, improved revenue generation, and strategic utilisation of borrowed funds to ensure they contribute meaningfully to economic growth. They also urged diversification of the economy to reduce reliance on debt financing over time.

The government has previously assured citizens of its commitment to sustainable borrowing and transparent utilisation of funds. However, stakeholders continue to advocate for stronger domestic revenue mobilisation to ease the burden of debt servicing.

The development underscores the delicate balance Nigeria must maintain between financing development needs and managing repayment obligations in a challenging global economic environment.