Nigeria's H1 2026 debt service falls to $1.82bn as interest rises

Nigeria spent $1.82 billion servicing external debt in the first half of 2026, down 21.5% from $2.32 billion in the same period of 2025, according to the Debt Management Office. Interest payments rose to $1.11 billion, a 12.2% increase, while principal repayments fell 50.7% to $648.1 million. Other charges jumped 281.2% to $61.75 million. The country's external debt stock grew to $106.43 billion, up from $92.96 billion a year earlier.

Commercial creditors, mainly Eurobond investors, received the largest share at $827.5 million (45.4% of total service), with Eurobond alone accounting for $645.2 million (35.4%). Multilateral lenders got $676.1 million (37.05%), led by the World Bank's IDA at $448.3 million. Bilateral creditors were paid $321.1 million (17.6%), with China's Exim Bank taking $245.8 million.

Although lower debt-service payments ease short‑term fiscal pressure, the rising interest burden and higher debt stock signal growing sustainability challenges. The government will need stronger revenue, foreign‑exchange earnings, and productive use of borrowed funds to keep debt on a sustainable path.

SOURCE: https://nairametrics.com/2026/10/13/nigeria-spends-1-82-billion-on-external-debt-service-in-h1-2026/