Nigeria's Foreign Debt Servicing Nears $1 Billion in 2026

Nigeria spent approximately $920 million on servicing foreign debt in the first two months of 2026, according to the Central Bank of Nigeria (CBN). The country paid $440 million in January and $480 million in February.

During this period, total capital outflow rose from $1.63 billion in January to $2.75 billion in February, primarily due to increased capital transfers and higher loan repayments. The CBN noted that capital transfers accounted for 82.18% of total capital outflow in February, while loan repayments constituted 17.45%.

Despite the increase in capital outflow, Nigeria's external position remained strong, supported by improved trade surplus and capital inflow, with foreign reserves rising from $48.88 billion in January to $50.12 billion in February. The International Monetary Fund projected Nigeria's public external debt to rise to $51.9 billion in 2025 and $72.6 billion in 2027, reflecting a 40% increase over two years.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, defended government borrowing, emphasizing the focus on returns rather than the size of debt.