Naira Devaluation Increases Nigeria’s Foreign Debt by N30tn – Report

Naira Devaluation Increases Nigeria’s Foreign Debt by N30tn – Report

By Fly Cable News

The devaluation of the naira has raised Nigeria’s external debt by approximately N30.03 trillion between 2023 and June 2024, according to analysis. While the country’s foreign debt in U.S. dollars decreased slightly, the depreciation of the naira made Nigeria’s foreign obligations significantly more expensive in local currency terms.

As of June 2024, Nigeria’s external debt stood at $42.9 billion, equivalent to N63.07 trillion, up from N33.25 trillion in June 2023 due to a 47.6% fall in the value of the naira. The analysis also highlighted that the naira devaluation added N30.02 trillion to Nigeria’s foreign debt within a year.

Despite the nominal value of Nigeria’s external debt remaining stable in dollars, the weakening currency has caused a dramatic rise in its naira equivalent. External debt now accounts for nearly 47% of Nigeria’s total debt, with multilateral lenders, such as the World Bank and the IMF, holding the largest share.

Additionally, Nigeria owes significant amounts to bilateral creditors like China and France, and commercial creditors, especially through Eurobonds.