Economy

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

Friday, June 10, 2022 at 7:21 AM by Dave Ibemere

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

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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

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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