₦airaland Forum

Nigeria’s total debt service payments dropped significantly from $540 million in January 2025 to $276 million in February 2025.

This is according to the Central Bank of Nigeria (CBN)’s latest data on external sector payments.

This decline comes amid ongoing efforts by the federal government to restructure its debt portfolio, improve dollar liquidity, and ease pressure on the foreign exchange market.

The figures, published on the apex bank’s website, highlight the increasing strain of debt obligations on Nigeria’s external reserves and overall fiscal sustainability.

Analysts suggest that recent debt repayment deferrals and negotiations with multilateral lenders may have contributed to the lower outflows for the month.

Surge in Letters of Credit

While debt service payments declined, Letters of Credit (LCs) rose sharply, indicating increased financing of trade transactions.

The CBN reported that LCs issued in February 2025 totaled $95.6 million, a 48% increase from $64.6 million in January 2025.

The rise in LCs suggests a recovery in import-related activities, particularly as businesses adjust to the fluctuating naira exchange rate and government policies aimed at stabilizing trade financing.

Foreign Reserves and Government Measures
President Bola Tinubu has said in the first 17 months of his administration, Nigeria’s revenue-to-debt service ratio has reduced to 65% from 97%.

The federal government has continued engagements with global lenders and investors to ease Nigeria’s growing debt burden.

The CBN’s monetary policy direction in recent months has focused on stabilizing the naira while balancing external obligations.

According to the Debt Management Office (DMO), Nigeria’s debt servicing payments have surged by 69% in the first half of 2024, reaching N6.04 trillion, up from N3.58 trillion recorded in the same period of 2023.

TimeManager:
https://nairametrics.com/2025/03/17/nigerias-debt-service-drops-to-276-million-in-february-2025-cbn/?amp=1

femi4:
Fake stat

Poverty everywhere in the land

TimeManager:
https://nairametrics.com/2025/03/17/nigerias-debt-service-drops-to-276-million-in-february-2025-cbn/?amp=1

TimeManager:
Bringing down debt service ratio, bringing down debt service payments within two years. We don't deserve this hardworking, courageous and intelligent man. You don't appreciate what you've got until you lose it.


-Kiss the truth!

obyno82:
Truth kisser and lie teller. We are not stupid bro, yes the debt servicing will drop because Tinubu has devalued the currency twice in two years. So definitely the volume of USD required for servicing will reduce, but the volume of Naira to match the rate will spike.

obyno82:
Truth kisser and lie teller. We are not stupid bro, yes the debt servicing will drop because Tinubu has devalued the currency twice in two years. So definitely the volume of USD required for servicing will reduce, but the volume of Naira to match the rate will spike.

obyno82:
Truth kisser and lie teller. We are not stupid bro, yes the debt servicing will drop because Tinubu has devalued the currency twice in two years. So definitely the volume of USD required for servicing will reduce, but the volume of Naira to match the rate will spike.

obyno82:
Truth kisser and lie teller. We are not stupid bro, yes the debt servicing will drop because Tinubu has devalued the currency twice in two years. So definitely the volume of USD required for servicing will reduce, but the volume of Naira to match the rate will spike.

Tjra:
Which school did you attend?

Your parents need to be refunded.

obyno82:
Truth kisser and lie teller. We are not stupid bro, yes the debt servicing will drop because Tinubu has devalued the currency twice in two years. So definitely the volume of USD required for servicing will reduce, but the volume of Naira to match the rate will spike.