In the first ten months of 2023, Nigeria allocated a substantial $3.07 billion, constituting 50 percent of its $6.11 billion inflows, to service external debt.
This marked a notable increase of $850.42 million, debt percent surge compared to the $2.22 billion spent in the same period in 2022.
Monthly data from the Central Bank of Nigeria (CBN) revealed varying debt service payments, with July witnessing the highest at $641.69 million. The cumulative figures highlight the persistent strain on Nigeria’s foreign exchange resources.
Direct remittance accounted for $1.91 billion, representing 31 percent of foreign payments between January and October 2023. Though a slight decrease of one percent from 2022’s $1.93 billion, it remains a substantial portion.
Letters of credit comprised 19 percent of the dollar payments, totaling $1.14 billion, reflecting a seven percent decrease from 2022’s $1.23 billion.
