Nigeria's external debt service obligations surged to $1.08 billion in the fourth quarter of 2024, reflecting a sharp rise from the previous quarter, according to data from the Debt Management Office (DMO).
This increase follows a broader trend of rising debt service costs, with total payments reaching N3.57 trillion in Q3 2024—a N60 billion (1.71%) increase from Q2.
A breakdown of the Q4 2024 external debt service reveals that multilateral creditors received the bulk of payments at $600.71 million, or 55.7% of the total. The International Monetary Fund (IMF) alone accounted for $407.97 million, making it Nigeria's largest creditor for the period.
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Other multilateral lenders included the International Development Association (IDA) at $116.48 million, African Development Bank (AfDB) at $43.89 million, International Bank for Reconstruction and Development (IBRD) at $14.48 million, and Islamic Development Bank (IsDB) at $5.83 million.
Commercial creditors were paid $430.53 million (39.9%), with $280.16 million going to syndicated loans and $148.57 million to Eurobond holders. Minor repayments were made to UniCredit S.P.A ($1.54 million), Standard Chartered Bank ($144k), and Deutsche Bank AG ($108k).
Bilateral creditors received a total of $46.85 million (4.3%), led by France's Agence Française de Développement (AFD) at $33.13 million, Germany's KfW at $11.84 million, and China Development Bank at $1.88 million. No payments were made to Japan, China Exim Bank, or India Exim Bank during the quarter.
The rising debt service burden is sparking renewed concerns over Nigeria's debt sustainability, especially amid a volatile exchange rate and dwindling foreign reserves. Analysts warn that heavy reliance on non-concessional loans—such as IMF disbursements and Eurobonds—continues to strain the country's external finances.
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