Nigeria spent $817.41 million on debt servicing as a total of $180.3 million was received as remittances in the first two months of the year. Whilst the amount paid to services the debt obligations of the country had declined, remittances had increased slightly.
This amounts to about N1.25 trillion using the current exchange rate of N1,538/$1.
This is compared to $843.737 million that was paid out between January and February of 2024 representing 3.1 per cent decline in the amount paid out for servicing the country’s debt obligations.
Data released by the Central Bank of Nigeria also showed that remittances received in the first two months had increased slightly by 1.46 per cent when compared to $177.71 million that was remitted in the first two months of last year.
According to the data, a total of $540.67 million had been spent on debt servicing in January 2025 and another $276.73 million in the month of February. This is compared to N560.51 million and 283.21 million that was spent in January and February of last year respectively.
Cumulatively, a total of $4.65 billion had been paid out for debt servicing between January and December 2024, with the highest amount paid out in August. According to the CBN data, August debt servicing payment for 2024 stood at $854.36 million.
Meanwhile, remittances which had declined from $173.37 million in December last year to $54.44 million in January 2025, picked up in February to $125.58 million. At the end of last year, total remittances stood at $1.91 billion. The highest remittance was recorded in August 2024 when $365.44 million was received.
The governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, had earlier said the remittances of the country is expected to double as the current value of the naira makes it competitive to attract foreign investments into the country.
Cardoso, while noting that while the adjustment of the naira has had a negative impact on the country due to its import dependency, said it had also presented opportunities.
“I see a lot of foreign investors coming in to take advantage of it. At this stage, our currency is a lot more competitive and the implications for exports and productive activity is significant” he stated, adding that he expects diaspora remittances to double this year following the market reforms.
He noted that the reforms had been able to reduce the disparity between the bureau de change (BDC) and official rates whilst fostering stability in the forex market. Expressing optimistic prospects for the currency, he said the apex bank will continue to “strengthen our mechanisms to constantly be on the watch out for market participants and to ensure that all those who are in that market are subjected to the best practices and those who fail to conform would be appropriately dealt with.”
He pointed out that the recent initiatives and products such as the non-resident BVN and accounts were in response to the discourse between the apex bank and Nigerians in diaspora, Cardoso said “I am very confident that we are going to see a very positive outcome. We are already seeing and the impact is already starting to show.
“My discussions with the diaspora shows that everybody is very committed to doubling the levels that we are in. So, there are good things ahead on the foreign exchange side. Our efforts have resulted in a significant milestone in 2024 with over $6 billion in foreign capital inflow into Nigeria, external reserves exceeding $40 billion signaling growing investor confidence.
