Nigeria has spent approximately $2.93bn servicing its Eurobond obligations across eight quarters under President Bola Tinubu, according to external debt-service data released by the Debt Management Office (DMO). The figures, covering the period from Q3 2023 to Q2 2025, highlight the heavy financial strain posed by commercial borrowing on the country’s external debt profile.
Over the two-year period, Eurobond servicing accounted for 31.5 per cent of Nigeria’s total external debt service of $9.32bn. A breakdown of the payments shows that interest charges alone consumed $2.43bn, representing 83 per cent of the entire Eurobond servicing bill. This trend underscores the high cost of Nigeria’s reliance on commercial debt instruments and suggests that hefty interest obligations will continue to weigh on government finances for years.
The analysis also shows that Q3 2023—the first full quarter of the Tinubu administration—was the costliest period within the eight-quarter window. During the quarter, Nigeria paid a total of $943.66m in Eurobond obligations. This included a $500m principal repayment following the maturity of a Eurobond, as well as $443.66m in interest charges.
Debt analysts have repeatedly warned that the structure of Nigeria’s commercial debt, especially Eurobonds issued at relatively high yields, exposes the country to elevated refinancing risks and steep interest costs. The latest debt-service data reinforces concerns that a significant portion of government revenue will continue to be channelled into meeting external debt obligations rather than funding development priorities.
The rising cost of Eurobond servicing comes at a time when the Federal Government is seeking to stabilise public finances, restore investor confidence, and manage fiscal pressures stemming from subsidy removal and exchange-rate reforms. With more Eurobond maturities expected in the coming years, analysts say Nigeria may need to rebalance its borrowing mix to reduce exposure to expensive commercial debt.
