Good News: Nigeria Successfully Repays China, World Bank, Others $3.07bn Debts, DMO Gives Balance

• The CBN data has shown that Nigeria spent a total of $3.07 billion on external debt servicing in ten months of 2023
• The amount shows an increase in debt payment compared to the $2.22 billion it spent during the same time in 2022
• The DMO data showed that as of September 30, 2023, the total public debt was $114.35 billion

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Data released by the Central Bank of Nigeria (CBN) has shown the total amount of external debt servicing in 2023 from January to October.

During the ten months, the nation paid $3.07 billion in servicing its foreign debt. The amount represents an increase of $850.42 million or 38.31% over the $2.22 billion it spent during the same time in 2022.

Read also

"N87.91 trillion debt profile": New data shows how much each Nigerian owes under Tinubu

A breakdown of the data showed that to service its external debt, the government spent $112.35 million in January, $288.54 million in February, and $400.47 million in March.

In addition, $92.85 million was spent in April, $221.05 million in May, $54.36 million in June, and $641.69 million in July.

The data further showed that $309.96 million was spent in August, $439.06 million in September, and $509.73 million in October.

Earlier, Legit.ng reported that the federal government paid $1.17 billion to service foreign debt commitments in the first half of 2023.

The country's significant lenders include China, the World Bank, the African Development Bank, the Islamic Development Bank, Japan, France, and others.

More debt to be paid by Nigeria

The Debt Management Office (DMO) data showed that the outstanding total public debt (external and internal) summed up to $114.35 billion or (N87.91trn) as of September 30, 2023.

Read also

Full list of sectors that allegedly received $347bn forex allocation from CBN as EFCC begins probe

The external debt makes up $41.59 billion, 36.38%, and domestic debt makes up $72.76 billion, 63.62%.

Domestic debt includes the federal government, the 36 state governments, and the Federal Capital Territory (FCT).

According to the DMO, the Central Bank of Nigeria (CBN) official exchange rate of US$1 to N768.76 as of September 30, 2023, was used in converting external debt to naira.

Tinubu's govt reduces Nigeria's external debt

Legit.ng reported that the administration of President Bola Tinubu reduced Nigeria's external debt stock by $1.57 billion to $41.59 billion as of September 30, 2023, from $43.16 billion it stood in June 2023.

This is according to the third quarter public debt report published by the Debt Management Office.

The decline, DMO said, is due to the redemption of Nigeria's $500 million Eurobonds and the first principal payment of $413.859 million from the IMF's $3.4 billion loan obtained during the 2020 COVID-19 period.

Source: Legit.ng