Federal Government Repays China, India Others Over N536bn for Matured Debts, N16.6trn Left

Federal Government Repays China, India Others Over N536bn for Matured Debts, N16.6trn Left

  • The federal government has continued its repayment of matured debts collected over the years
  • The latest data shows another tranche of loan repayment has been done to China, India and other countries
  • More payments are expected in the coming months, as a total of N17.2 trillion in external loans remains unpaid

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According to the Debt Management Office, the federal government spent N1.87 trillion repaying matured loans in the first six months of 2022.

The loans include those from foreign countries, organizations and those domestic markets.

DMO stated this in its latest debt report published on its website on Tuesday.

Nigeria External debt servicing to countries
Breakdown of Nigeria's total debt stock Credit: DMO
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Breakdown of payment

According to the report, N1.33 trillion of the total debt service went to domestic creditors, while N536.16 billion went to foreign creditors.

BusinessDay reports that foreign debt servicing payments were made to multilateral institutions, bilateral institutions, commercial creditors, and others.

Commercial external creditors received N848.33 million, accounting for 65.7 percent of total debt servicing payments made to external creditors in the six months ending June 2022.

Multilateral creditors received N278.62 million, or 21.6 percent of total payments, while bilateral creditors received N165 million, or 12.8% of total debt servicing payments made by the Nigerian government.

How much money has been repaid to countries

According to Legit.ng breakdown 3.51 per cent of the total $4.7 billion owed to countries was paid in the first six months of 2022.

Countries paid in six months of 2022

  • France- $23.73 million
  • Germany- $12.60 million
  • China- $124.56 million
  • India- $4.09 million

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How much is left to be repaid

  • China (Exim Bank of China) $3.92 billion
  • France (Agence Francaise Development) $526.57 million
  • Japan (Japan International Cooperation Agency) $60.65 million
  • India (Exim Bank of India) $31.50 million
  • Germany (Kreditanstalt Fur Wiederaufbua) $153.77 million

Top five states with highest external debt

Meanwhile, with Naira going through a rough patch against the US dollar, servicing the external debts of 36 states in Nigeria has become more expensive.

Data from the Debt Management Office (DMO) showed that as of December 2021, the total external debt stock of 36 subnational governments and the Federal Capital Territory Abuja stood at $4.77 billion.

As of December 2021, the states with the highest external debts were Lagos, Kaduna, Cross River, Edo, and Rivers.

Source: Legit.ng

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