Nigeria spent $998.92 million servicing its foreign debt in the first two months of 2026, highlighting the growing burden of external loan repayments amid increasing capital outflows from the economy. The figures, obtained from the Central Bank of Nigeria (CBN), show that debt servicing accounted for a significant share of the country’s foreign exchange obligations during the period.
The data revealed that external debt repayments rose sharply as the Federal Government continued to meet obligations to multilateral institutions, bilateral creditors and holders of Eurobonds. Analysts say the increase reflects Nigeria’s expanding external debt profile and the pressure it places on the country’s foreign exchange reserves.
The surge in debt servicing comes at a time when the government is also increasing domestic borrowing to finance its budget deficit and critical infrastructure projects. Economists have warned that rising debt repayment costs could reduce fiscal space for spending on key sectors such as healthcare, education and infrastructure if revenue generation does not improve.
Experts have therefore called for stronger efforts to boost non-oil exports, attract more foreign direct investment and improve domestic revenue mobilisation in order to reduce reliance on borrowing and ease pressure on the country’s external finances. They also stressed the importance of ensuring that borrowed funds are channelled into productive projects capable of generating long-term economic returns.
Despite the rising debt service obligations, government officials have maintained that Nigeria’s debt remains within sustainable limits and that ongoing economic reforms are expected to strengthen public finances, improve revenue collection and enhance the country’s capacity to meet its financial commitments.
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