New York, April 15, 2025 – Fitch, an international credit rating agency, had projected that Nigeria’s external debt service will rise to $5.2 billion in 2025.
Fitch disclosed this in its latest report on Nigeria’s external debts.
It reported that the external debt service would increase from $4.7 billion in 2024 to $5.2 billion in 2025.
This includes $4.5 billon in amortisation payments and a $1.1 billion Eurobond repayment due in November.
“Government external debt service is moderate, but expected to rise to $5.2 billion in 2025 (with $4.5 billion of amortisations, including a $1.1 billion Eurobond repayment due in November 2025), from $4.7 billion in 2024, and fall to $3.5 billion in 2026.”
Fitch said that although Nigeria’s external debt service remained within manageable levels, the high-interest costs, weak revenue performance, and limited fiscal space remained significant concerns.
It also expressed concern over the government’s revenue position, noting that interest payments will consume a substantial portion of income.
“We expect general government revenue-to-GDP to rise but to remain structurally low (averaging 13.3 per cent in 2025–2026), largely accounting for a high general government interest/revenue ratio, above 30 per cent, with federal government interest/revenue ratio of nearly 50 per cent,” the rating agency said.
