Nigeria's debt servicing costs surged to $1.36 billion, marking a significant 216.07% increase from the same period in 2023.
This dramatic rise is primarily attributed to escalating interest rates, which have intensified fiscal pressures on the nation amidst ongoing economic challenges.
The International Monetary Fund (IMF) received the largest share of these repayments, amounting to $813.58 million—a staggering 102.52% increase from the previous year.
This reflects the growing burden of Nigeria's external debt obligations, which Fitch Ratings projects will climb even further to $5.2 billion next year.
Nigeria's public debt has also seen a notable escalation, with domestic debt reaching N71.2 trillion and foreign debt standing at $42.9 billion.
Additionally, the government's reliance on Promissory Notes a form of domestic debt has increased by 6.5% to N1.65 trillion as of March 2024.
These notes are primarily used to meet financial commitments that cannot be immediately funded through revenue or cash.
President Bola Tinubu has called on global leaders to consider debt forgiveness for Nigeria and other developing nations, emphasizing that "countries of the global South would not make meaningful economic progress without special concessions and a review of their current debt burden."
He highlighted the need for international support to address the "global debt burden undermining the ability of countries and governments to meet the needs of their citizens."
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