CBN Reveals Nigeria’s $3.5bn Foreign Debt Servicing in 9 Months
The Central Bank of Nigeria (CBN) has reported that the country spent a substantial $3.5 billion on servicing foreign debt in the first nine months of 2024.
This significant expenditure reflects Nigeria’s ongoing challenge with debt management, particularly as foreign debt servicing consumes a large portion of national resources that could otherwise be allocated to development projects, healthcare, and education.
Nigeria’s foreign debt has grown over recent years due to borrowing to fund budget deficits and finance various infrastructural projects.
However, this level of debt servicing raises concerns about the country’s economic stability and the long-term sustainability of its debt obligations.
The high cost of debt servicing also places pressure on foreign reserves and impacts Nigeria’s ability to respond effectively to economic fluctuations and global economic shifts.
Analysts and economists often urge the government to explore more sustainable financing models and revenue-generating policies to reduce dependence on foreign loans, aiming for a more balanced approach to debt and economic growth.