When FX Blew Up Nigeria’s Debt Numbers

The phrase “when FX blew up Nigeria’s debt numbers” refers to the sharp rise in the Nigerian naira’s exchange rate against major currencies—especially the US dollar—in 2022‑2023. Because much of Nigeria’s external debt is denominated in dollars, the devaluation of the naira dramatically increased the local‑currency value of that debt. As the naira fell from around 380 per dollar in early 2022 to over 1,200 per dollar by mid‑2023, the amount of debt shown in naira terms swelled, pushing the country’s debt‑to‑GDP ratio higher and prompting warnings from the IMF and investors about debt sustainability. The “FX blow‑up” therefore describes how... Views Nigeria