Politics

How Nigeria Spent $2.78 Billion on Debt Servicing in Seven Months of 2024

Published by Tope Fakinlede on September 9th, 2024.

How Nigeria Spent $2.78 Billion on Debt Servicing in Seven Months of 2024

The Nigerian federal government has expended $2.78 billion on debt servicing over the first seven months of 2024, according to a report from the Central Bank of Nigeria (CBN). This data was detailed in the CBN’s latest ‘International Payments Data’ report, which also indicated that direct remittances totaled $1.18 billion between January and July 2024.

Bola Ahmed Tinubu

The breakdown of debt servicing expenditures shows a fluctuating trend throughout the year. In January, the government spent $560.52 million, which was followed by a significant drop to $283.22 million in February, a 49.5% reduction. March expenditures were slightly lower at $276.17 million, marking a 2.5% decrease from February. April saw a further decline to $215.20 million, a 22.1% decrease from March.

However, May witnessed a sharp increase, with debt servicing costs soaring to $854.37 million, a dramatic 297% rise from April, making it the month with the highest expenditure in this period. June experienced a drastic reduction, with only $50.82 million spent, the lowest monthly figure recorded. Spending rebounded in July to $542.50 million, a substantial 967% increase from June’s low.

In terms of direct remittances, January saw inflows of $138.56 million. February’s remittances dropped sharply to $39.15 million, a 71.7% decrease. March saw a recovery with $104.91 million received, marking a 168% increase. April’s remittances rose further to $193.31 million, an 84.3% increase from March. May recorded the highest inflow of $365.44 million, an 89% rise from April. June’s remittances declined to $270.52 million, a 26% decrease from May, and July saw a further drop to $72.29 million, a 73.3% decrease from June.