In the first two months of 2026, Nigeria spent close to $1 billion servicing its foreign loans as repayments of external debt increased due to rising capital outflows from the economy.
The figure, obtained from the Central Bank of Nigeria’s February 2026 Economic Report, showed that the country spent $440m on foreign loan repayments in January and $480m in February, bringing the total debt servicing bill for the two months to $920m.
The report showed that total capital outflows rose significantly in February, driven largely by higher capital transfers and increased loan repayments. According to the CBN, “Capital outflows increased, mainly on account of higher capital transfers in the review period. Total capital outflow rose to $2.75bn, from $1.63bn in the preceding month.”
The apex bank attributed the increase primarily to a sharp rise in capital transfers, although debt repayments also contributed to the higher outflows. It stated, “The development was driven mainly by a 91.53 per cent increase in capital transfers to $2.26bn, relative to the level in the preceding month. Outflow through loan repayments also rose to $0.48bn from $0.44bn in January 2026.”
The report added that dividend repatriation declined during the review period. “In terms of share, capital transfers accounted for 82.18 per cent of total capital outflows, loan repayments (17.45 per cent), while repatriation of dividends constituted the balance,” the CBN noted.
An analysis of the figures showed that debt repayments accounted for nearly one-fifth of Nigeria’s total capital outflows in February, highlighting the growing burden of servicing the country’s external obligations.
The report also indicated that the banking sector accounted for the largest share of capital outflows at 45.96 per cent, followed by the financing sector at 26.10 per cent, oil and gas at 15.72 per cent, telecommunications at 3.51 per cent, and production/manufacturing at 2.62 per cent, while other sectors made up the balance.
It also showed that Lagos accounted for 62.90 per cent of capital outflows, followed by the Federal Capital Territory at 37.04 per cent, with Ondo, Ogun and other states accounting for the remainder.
Despite the increase in capital outflows, the CBN said Nigeria’s external position remained strong during the period. In its summary of economic developments, the bank stated that “despite heightened geopolitical risks and trade tensions, the external sector recorded a higher trade surplus and capital inflows, due largely to lower import bills and increased capital transfers.”
It added that foreign reserves rose to $50.12bn in February from $48.88bn in January, providing import cover of 9.61 months, well above the international benchmark of three months.
The PUNCH earlier reported that Nigeria spent about $5.21bn servicing external debt obligations in 2025, accounting for more than 72 per cent of the country’s total international payments during the year, according to the data obtained from the Central Bank of Nigeria.
