Nigeria reports decline in external debt servicing and shifts in credit market

Nigeria's external debt servicing payments fell to $954.1 million in the first quarter of 2026, representing a 31 percent decrease from the $1.39 billion paid during the same period in 2025. According to the Debt Management Office, the decline was primarily driven by a reduction in principal obligations rather than a decrease in the cost of debt. Interest payments accounted for approximately 65 percent of the total, totaling $623.22 million, while principal repayments amounted to $308.33 million. While payments to multilateral and bilateral creditors decreased, market-related debt payments rose to $501.8 million from $431.6 million the previous year.

In the domestic credit market, Nigeria's registered debtors averaged 9,611 in the first quarter of 2026, a 52.2 percent increase compared to the first quarter of 2025. However, this figure marks a significant 88.5 percent drop from the quarterly average of 83,370 recorded in the fourth quarter of 2025. Data from the Central Bank of Nigeria and the National Collateral Registry indicates that individual debtors averaged 8,409 in Q1 2026, up 54.1 percent year-on-year, despite the sharp decline from the peak levels seen at the end of 2025.