Nigeria expended close to $1 billion on repaying its external loans during the first two months of 2026, as debt obligations continued to exert pressure amid rising capital outflows.
According to data from the Central Bank of Nigeria’s February 2026 Economic Report, the country paid $440 million in foreign loan repayments in January and $480 million in February totaling $920 million over the period.
The report noted a significant rise in overall capital outflows in February, climbing to $2.75 billion from $1.63 billion the previous month.
This surge was primarily driven by a 91.53% jump in capital transfers to $2.26 billion, with loan repayments also contributing. Debt service accounted for 17.45% of total capital outflows in February, while capital transfers made up 82.18%.
Sector-wise, the banking industry led outflows at 45.96%, followed by financing (26.10%), oil and gas (15.72%), and other sectors. Geographically, Lagos dominated with 62.90% of outflows, ahead of the Federal Capital Territory at 37.04%.
Despite these pressures, the CBN highlighted a resilient external position, with foreign reserves increasing to $50.12 billion in February from $48.88 billion in January, offering 9.61 months of import cover well above the global benchmark of three months.
This early-year trend aligns with broader figures showing Nigeria spent $5.21 billion on external debt servicing throughout 2025, up from $4.66 billion in 2024.
Projections from the International Monetary Fund indicate Nigeria’s public external debt could rise substantially, reaching $72.6 billion by 2027.
Finance Minister Taiwo Oyedele has previously defended government borrowing, emphasizing the need to evaluate loans based on their purpose, cost, and expected returns rather than the volume alone.
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