Debt servicing gulps N1.24 trn in Q1, 2023

The Nigeria government spent a total of N1.24 trillion to service debt in the first quarter (Jan-March) of 2023, as total public debt hit N49.85 trillion, Debt Management Office (DMO) report reveals.

According to DMO, N874.12 billion was spent to service domestic debt while external debt servicing gulped N368 billion ( $801.36 million).

A breakdown of the domestic debt service data revealed that N244.56 billon was paid in January, N146.41 billion in February and N483.149 billion in March.

Interest on treasury bills (NTBs) gulped N56.5 billion, interest on FGN bonds gulped N723.95billion while N8.17 billion was paid as rentals on Sukuk.

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Also, N622, 808,510 was paid as interest on FGN savings bond while N84.9 billion was spent on promissory notes.

On external debt service payment, international development association received $140,980,701, international Bank for reconstruction and development received $488.35, while debt service payment to the African Development Bank was $51, 606,564.67.

Also debt service payment made to African growing together fund was $101,062.15, African Development fund received $13,891,618.99, European development fund received $1,055,965.10, Islamic development Bank received $5,014,405.05 while international fund for agricultural development received $1,809, 132.05.

DMO’s report also showed that Nigeria’s total public debt for the period ending March 31, 2023 stood at N49.85 trillion ($108.30 billion), representing a 7.22 percent increase from N46.25 trillion ($103.31 billion) recorded as at December 2022.

Of the total amount, total external debt for the period was N19.64 trillion ($42,671.70) while total domestic debt was N30.21 trillion($65,623.48). FGN debt stock was N24.73 trillion while the total debt for 36 states and FCT was N5.47 trillion respectively.

It stated that the domestic debt of the FGN does not include the N22.7 Trillion Ways and Means Advances at the CBN for which the approval of the National Assembly (NASS) to securitize, as it was received in May 2023. “The amount will be included in the June 2023 Debt Data.”