Nigeria’s Debt Service Gulps N3.04 Trillion as Total Debt Stock Hit N44.06 Trillion
- Debt servicing by the Federal Government has gulped about N3.04 trillion in the first nine months of 2022
- This comes as the country’s public debt stands at N44.06 trillion in the first nine months of this year
- The World Bank projected that Nigeria would spend about 100.2 per cent of its revenue on debt servicing by the end of 2022
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The Nigerian government borrowed about N1.22 trillion between September and December 2022, bringing the country’s total debt stock to N44.06 trillion.
With the present debt stock of N44.06 trillion recorded as of September 2022, Nigeria has spent N3.04 trillion to service external debts in nine months of this year, representing a spike of 23.4 per cent Year-on-Year from N2.46 trillion reported in nine months, data from the Debt Management Office (DMO) says.
Domestic and external debt service gulp trillions
An examination of the N3.04 trillion debt service payments shows that a total of N2.15 trillion was used by the federal government to service domestic debts in nine months.
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A breakdown of the N3.04 trillion debt service payments revealed a total of N2.15 trillion was used by the federal government to service domestic debts in nine months of 2022.
According to the DMO, the federal government debt service payments for domestic debts such as Treasury Bills, FGN Bonds, Green Bonds and Sukuk Bond borrowings spiked by 23.5 per cent Year-on-Year in nine months of this year over the need to shore up the 2022 budget finance deficit.
On external debt, the federal government debt service payments with multilateral, bilateral Eurobond and Diaspora Bonds also went up by 23.14 per cent in the period under review.
ThisDay report says that the federal government's domestic debt service in the first quarter of 2022 stood at N668.69 billion but went down to N664.7 billion in the third quarter as the government ramps up the selection of N685.61 billion FGN Bonds borrowing.
World Bank raises alarm
The World Bank has forecasted that debt servicing by Nigeria will consume about 123.4 per cent of the Federal Government’s revenue next year.
The bank said in a document titled ‘Nigeria Public Finance Review: Fiscal Adjustment for Better and Sustainable Development Results,’ that debt service would take up 100.2 per of Nigeria’s revenue in 2022.
Punch reported that the World Bank projection is a decline from the earlier forecast in its October Africa’s Pulse report, a biennial analysis of the near-term macroeconomic outlook for the region.
The Pulse report by the bank said that Nigeria’s debt service-to-revenue ratio could be 102.3 per cent by the end of 2022, describing Nigeria’s public as worrisome due to the increasing debt-to-service ratio.
Nigeria’s public debt hits $151 billion as largest creditors are revealed
Legit.ng reported that as of June this year, Nigeria’s public debt has reached $151 billion, and most of the creditors are Nigerians.
Data from the Central Bank of Nigeria (CBN) reveals that Nigeria’s total public debt is estimated at $151 billion as of June this year.
The debt is relative to the $103.3 billion reported by the Debt Management Office (DMO).