By Adedapo Adesanya

Nigeria spent about $2.01 billion on external debt repayment between January and April 2025, higher than the $1.33 billion recorded during the same period in 2024.

This is according to the latest international payment data by the Central Bank of Nigeria (CBN).

Debt servicing alone accounted for 77.1 per cent of Nigeria’s total international payments within the four months, a sharp rise from the 64.5 per cent share recorded in the same period of 2024.

In total, the country’s international payments, comprising debt service, remittances, and letters of credit, stood at $2.60 billion as of April 2025, up from $2.07 billion recorded in the corresponding period of 2024.

Nigeria’s foreign exchange reserves reportedly fell by about $3 billion during the review period.

On a month-to-month basis, Nigeria paid $540.67 million in January 2025 from $560.52 million recorded in January 2024.

In February, the figure stood at $276.73 million, almost unchanged from the $283.22 million paid in February 2024.

However, Nigeria’s debt service, spiked in March to $632.36 million, more than double the $276.17 million paid in the same month last year.

The upward tick continued in April with another $557.79 million repaid a 159 per cent increase from the $215.20 million paid in April 2024.

The country spent nearly $1.2 billion on debt repayments within March and April alone, the data revealed.

The development follows confirmation by the International Monetary Fund (IMF) that Nigeria had fully repaid the $3.4 billion financial support it received under the Rapid Financing Instrument to cushion the economic impacts of the COVID-19 pandemic.

The loan is one of the largest disbursements under the Rapid Financing Instrument globally and came with relatively favourable terms compared to traditional IMF programmes.

In a statement on behalf of the IMF Resident Representative for Nigeria, Mr Christian Ebeke, the Fund said the repayment was completed on April 30, 2025.

IMF stated that, “As of April 30, 2025, Nigeria has fully repaid the financial support of about $3.4bn it requested and received in April 2020 from the International Monetary Fund under the Rapid Financing Instrument to help alleviate the impact of the COVID-19 pandemic and the sharp fall in oil prices.”

The loan, disbursed in April 2020, was aimed at helping Nigeria address a sharp fall in oil prices, economic contraction, and fiscal pressures caused by the pandemic.

Despite full repayment of the principal, Nigeria will continue to pay additional annual fees related to Special Drawing Rights charges of about $30 million over the next few years.

The charges are tied to the difference between Nigeria’s SDR holdings, which currently stand at SDR 3,164m ($4.3 billion), and its cumulative SDR allocation of SDR 4,027m ($5.5 billion).

The charges are levied at the SDR interest rate, which is updated weekly, and will continue until Nigeria’s SDR holdings match the cumulative allocation amount, the IMF noted.

By Dipo Olowookere

Businesses operating in Africa encounter many challenges and the chief among them is foreign exchange (FX) liquidity because of most countries on the continent rely on traditional systems that are no longer suited for how business is done today, the Head of Product and Technologies at Ledig Technologies, Mr Chiagozie Iwu, informed Vanguard in a recent interview.

“One major issue you’ll find in about 70 per cent to 80 per cent of African countries, especially for businesses with global exposure, is access to foreign exchange.

“The ability to access foreign exchange, to hedge against currency risks, and to sell goods and services while getting paid in a strong, globally leveraged currency like the US dollar, are some of the biggest challenges businesses face,” he stated, listing other issues as security risks, inadequate regulatory frameworks, and a lack of proper legal protection.

He blamed the inability of African nations to update their forex processes as the reason for this, noting that, “When you use FX systems designed for doing business in the 1970s, you simply can’t keep up with today’s global pace.”

“When it comes to foreign exchange, there are traditional markets for FX facilitation. However, in countries like Nigeria, Kenya, Malawi, Ghana, and Egypt, many of these traditional markets are broken. They tend to favour certain types of businesses, and if you don’t fit into those categories, you’re likely to struggle with accessing and managing foreign exchange for your operations,” Mr Iwu disclosed.

However, he pointed out that the blockchain technology and stablecoins are gradually bridging the gap because they provide a more flexible alternative as they are often more liquid than the US dollar itself.

“Foreign exchange in Africa is a big problem. Traditional systems have failed us, and I see stablecoins stepping in to bridge this gap because they are properly digitized.

“Stablecoins are going to be a major financial engine in Africa, and I don’t just mean USD-backed stablecoins. It also includes local stablecoins like the CNGN,” he said,” referencing the strong adoption of stablecoins like USDT and USDC among the younger generations, emphasizing that stablecoins are already becoming a major part of the financial system.

He also praised the CNGN as the first proper attempt to create a regulated Nigerian stablecoin, expressing hope that more African countries will follow suit.

Mr Iwu stated that Ledig is in the financial market to help businesses navigate the FX struggles they go through.

“We help companies, including those facilitating payments for retail users, access liquidity. Our OTC desk enables high-ticket, high-volume foreign exchange and stablecoin conversions between local currencies and stablecoins, and vice versa.

“We also provide hedging instruments that allow businesses to protect themselves against currency exchange risks.

“Whatever you are doing in Africa, whether it’s trade financing, payments, e-commerce, trading, imports, exports, Ledig helps guarantee stablecoin liquidity you can leverage to scale, removing the FX hurdles that usually slow businesses down,” he stated, averring that many companies serving the retail trade sector rely on Ledig’s infrastructure to serve their customers.

“While having the US dollar for foreign exchange protection is important, having a properly digitized Nigerian Naira that is accessible to people and businesses outside Africa is equally critical. It’s initiatives like this that are also very useful for companies like Ledig,” Mr Iwu submitted.

Business Post reports that Ledig Technologies is a fintech company focused on providing financial solutions for businesses with foreign exchange exposure to Africa.

By Modupe Gbadeyanka

The price of Premium Motor Spirit (PMS), commonly known as petrol, has again been reduced by Dangote Petroleum Refinery and Petrochemicals by N15 to N875 per litre.

The private refiner confirmed this in a statement made available to Business Post on Thursday afternoon, noting that it was to make the product affordable to Nigerian consumers.

It stated that consumers can purchase its high-quality PMS at N875 per litre in Lagos, N885 per litre in the South West, N895 per litre in the North West and North Central; and N905 per litre in the South East, South South, and North East.

Consumers can buy Dangote petrol at retail stations of MRS, AP (Ardova), Heyden, Optima Energy, Techno Oil, and Hyde.

The refinery called on other marketers to join its expanding network of partners, thereby demonstrating their support for President Bola Tinubu’s Nigeria First policy, which advocates for the prioritisation of locally-produced goods and services.

The company assured the public of a consistent supply of petroleum products, with sufficient reserves to meet domestic demand, as well as a surplus for export to enhance the country’s foreign exchange earnings.

“By refining petroleum products domestically at the world’s largest single-train refinery, we are proud to make a substantial contribution to Nigeria’s energy security, foreign exchange savings, and overall economic resilience—aligning with President Tinubu’s Renewed Hope Agenda, which focuses on addressing the nation’s economic challenges and improving the well-being of Nigerians.

“We are immensely grateful to the President for making this possible through the commendable Naira-for-Crude Initiative, which has enabled us to consistently reduce the price of petroleum products for the benefit of all Nigerians,” a part of the statement said.

Since the commencement of operations, Dangote Petroleum Refinery has consistently implemented cost-reduction strategies aimed at delivering tangible savings to Nigerians.

In February 2025, the company carried out two price reductions on petrol, resulting in a total decrease of N125 per litre. This was followed by a further reduction of approximately N45 per litre in April.

Additionally, the prices of other key products, such as diesel and Liquefied Petroleum Gas (LPG), have been significantly lowered, improving affordability across transportation, industrial, and domestic energy sectors.

Dangote Petroleum Refinery recently reassured Nigerians of price stability despite fluctuations in global crude oil prices, reaffirming its commitment to supporting Nigeria’s economy.

The founder of the Lagos-based oil facility, Mr Aliko Dangote, was named on Tuesday in the inaugural 2025 TIME100 Philanthropy list, which recognises the 100 most influential leaders shaping the future of philanthropy worldwide.

The list, published by TIME Magazine, includes Aliko Dangote, whose Foundation spends an average of $35 million annually on programmes across Africa, alongside other global figures in charitable work, such as Michael Bloomberg, Oprah Winfrey, Warren Buffett, and Melinda Gates, all of whom were recognised as Titans.