Nigeria Becomes Least Indebted After Repays $1.12 Billion to China, IMF, and World Bank in 2024

Nigeria has cleared debt servicing burden as the country spends $1.2 billion on foreign debt repayment in the first quarter of 2024. 

According to the Central Bank of Nigeria (CBN), debt service payments have been increasing steadily over the years, with a 39.7% rise from $801.36 million in Q1 2023 to $1.12 billion in Q1 2024.

A monthly breakdown of debt service payments shows a fluctuating but consistently high expenditure. In January 2024, Nigeria spent $560.52 million on debt servicing, exceeding the previous year’s figure. 

February’s debt servicing moderated at $283.22 million, while March’s figure stood at $276.17 million, lower than the previous year’s $400.47 million.

Reports indicate that 70% of Nigeria’s dollar payments between January and March 2024 went towards debt servicing. The country’s debt stock has risen above N97 trillion, with external borrowing accounting for the highest portion. 

Nigeria’s external debt stands at $42.495 billion as of December 31, 2023, with China and the World Bank Group being the largest creditors, at $5.167 billion and $14.960 billion, respectively.

Despite this, Nigeria has been ranked among the countries with the least debt burden in 2024, with a debt-to-GDP ratio of 22.47%, the second lowest in Africa. 

The country’s external debt stands at $41.59 billion or N31.98 trillion as of December 2023, placing it among the bottom 10 of the least indebted African countries going into 2024.