Federal Government Publishes Details Of Over N896bn Spent On Debt Servicing first 3 Months in 2022

Federal Government Publishes Details Of Over N896bn Spent On Debt Servicing first 3 Months in 2022

  • In the first three months of 2022, the federal government spent about N896 billion on debt servicing
  • The Debt Management Office's most recent report includes a breakdown of the payment from January to March
  • In a recent article, the International Monetary Fund (IMF) raised worry over Nigeria's mounting debt and dwindling revenue

The Federal government has revealed that it spent over N896.7 billion in the first three months of 2022 repaying matured foreign and local debts.

This is according to data published by the Debt Management Office (DMO) on Tuesday.

According to the DMO, N668.7 billion was spent on domestic debt servicing, while it spent $548.78 million (N227.81bn) on external debt servicing, giving a total of N896.7 billion.

Debt service, DMO, debt
Snapshot of Nigeria's outstanding public debt as at March 2022 Credit: DMO
Source: Facebook

The official exchange rate of the Central Bank of Nigeria (CBN) $1 =N415.75 is used for the external debt servicing conversion

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Breakdown of the debt serviced

For domestic debt, the government spent N188.36 billion in January, N103.88 billion in February, and N376.43 billion in March.

A breakdown of the domestic debt service payment showed that the Federal Government spent a total of N630.53 billion on payments for matured federal government bonds, while N29.64 billion was expended on the redemption of matured Nigeria Treasury Bills.

Also, N340.42 million was on FGN Savings Bond, and N8.16 billion was on FGN Sukuk rentals.

For external debt servicing in Q1, commercial loans had 44.86% per cent with a cost of $246.16 million, multilateral had 31.59% with a cost of $173.3m, and bilateral had 23.56% with a cost of $129.29 million.

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Legit.ng had earlier reported that President Muhammadu Buhari stirred heated reactions from Nigerians when he tabled a fresh request for the approval of another set of loans before the Senate.

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Each Nigerian now owes over N200,000 as share of national debt as it increases to N41.60trn end of March 2022

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Many Nigerians are against the borrowing spree of the current administration as it seeks to provide more infrastructure amid dwindling revenue.

Source: Legit.ng

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