The federal government of Nigeria spent a total of $2.78 billion on debt servicing in the first seven months of 2024, data released by the Central Bank of Nigeria (CBN) has revealed.

These figures were disclosed in the CBN’s recent ‘International Payments Data’ report, which also showed that Nigeria recorded $1.18 billion in total direct remittances from January to July 2024.

Analysis of the CBN data showed that in January, the government allocated $560.52 million to debt servicing, setting the tone for the year. This was followed by a reduction in February, where $283.22 million was spent, marking a 49.5 per cent decrease from January’s expenditure. March saw a slight decline, with $276.17 million allocated to debt servicing, representing a 2.5 per cent decrease from February. The trend of decreasing expenditures continued in April where $215.20 million was spent, reflecting a 22.1 per cent reduction compared to March.

In May, there was a sharp reversal of this downward trend, with debt servicing costs soaring to $854.37 million. This marked a significant 297 per cent increase from April’s expenditure, making May the month with the highest debt servicing outlay during this period. However, June experienced a dramatic drop in spending, with only $50.82 million allocated to debt servicing, a 94 per cent decrease from May. This was the lowest monthly expenditure recorded in the seven-month span. The spending picked up again in July, with $542.50 million spent on debt servicing, marking a substantial 967 per cent increase from June’s low point.

Also, a month-by-month analysis on the total direct remittances showed varying levels of remittance inflows throughout the seven months showed that A breakdown showed that in January, Nigeria received $138.56 million in direct remittances. However, February saw a sharp decline, with inflows dropping to $39.15 million, a 71.7 per cent decrease from January’s figure. March witnessed a rebound, with remittances increasing to $104.91 million, marking a 168 per cent rise from February.

The upward trend continued in April, where $193.31 million was received, a significant 84.3 per cent increase from March. The month of May saw the highest remittance inflow during this period, with $365.44 million recorded. This represents an 89 per cent increase from April, highlighting a strong surge in remittances, potentially driven by improved global economic conditions or favorable exchange rates. In June, however, remittances declined to $270.52 million, a 26 per cent decrease from May’s peak. Despite this drop, June’s inflow remained robust compared to earlier months. The downward trend continued into July, where remittances further decreased to $72.29 million, marking a 73.3 per cent decline from June.