According to Vanguard, President Bola Tinubu said, “Nigeria spent $817.4 million (N1.26 trillion) on debt servicing in the first two months of 2025, which is a 3.12 percent decrease from the $843.73 million spent during the same period in 2024.” He added, “In January, the government paid $540.7 million, and in February, it paid $276.7 million. In 2024, the total debt servicing amounted to $3.81 billion (N5.9 trillion).”
Tinubu also stated, “The Federal Government has proposed a record N54.99 trillion budget for 2025, which is a 56.89 percent increase from the N35.05 trillion allocated in 2024.” He called it the “Budget of Restoration,” explaining, “This budget is aimed at stabilizing the economy.” He highlighted that N16.3 trillion has been allocated for debt servicing, a 95 percent increase from the N8.25 trillion set aside in 2024, emphasizing the growing financial obligations.
Regarding Nigeria’s foreign trade, he noted, “The country’s Letters of Credit (LC) payments fell by 0.55 percent to $160 million in the first two months of 2025, compared to $160.9 million in 2024.” He explained, “LC payments are a critical measure of a country’s creditworthiness and trade activity. A decrease often indicates a slowdown in import trade.”
He also mentioned, “In 2024, total LC payments were $801.06 million, which represents a 39 percent decrease from $1.32 billion in 2023.” He pointed out that this drop reflects changes in trade patterns, possibly due to altered import demands or financial policies. “Managing debt and sustaining trade growth remain significant challenges,” he concluded.
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