In just six months, Nigeria spent over $2.3 billion servicing external debts

Key Takeaways

  • Nigeria paid $816.3 million to the International Monetary Fund, accounting for over 35% of total external debt service payments.
  • Eurobond payments followed closely, with $687.8 million paid, reflecting Nigeria’s heavy reliance on commercial debt instruments.
  • Multilateral lenders like IDA and AfDB collectively received about $463 million, signalling continued exposure to concessional financing.
  • China’s share shrinking: Payments to Chinese lenders (EXIM + CDB) totalled $235.6 million, less than 11% of total outflows, suggesting reduced Chinese debt servicing in H1 2025.

Between January and June 2025, Nigeria spent roughly $2.3 billion repaying external debts, a clear reflection of the country’s mounting fiscal pressure. The IMF and Eurobond holders together absorbed nearly two-thirds of total payments, highlighting the growing weight of non-concessional and market-based obligations. Meanwhile, payments to traditional development partners such as the World Bank’s IDA and the African Development Bank indicate Nigeria’s continued dependence on multilateral support for long-term financing.

China, once a dominant creditor, received comparatively smaller repayments this period, hinting at either maturing loans or a strategic debt management shift. Overall, Nigeria’s debt service pattern in the first half of 2025 underscores a tightening fiscal space, where more resources are directed toward debt repayment than developmental expenditure.

Source:

Debt Management Office

Period:

Jan - Jun 2025
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