Nigeria Spent N1.792 trillion Servicing Domestic Debts in Three Months of 2023

Nigeria has spent the sum of N1.792 trillion on servicing domestic debts in three months of July, August and September 2023.

Data sourced from the Debt Management Office (DMO) indicated that for the month of July, the country spent n268 billion to service its domestic debt.

The figure rose to N696 billion by august 2023 before hitting N827 billion in September 2023.

This represents a total of N1,792 trillion for the period in review.

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DMO noted that the amount represented domestic and external debts of the Federal Government, the 36 state governments and the Federal Capital Territory, Abuja.

This trend is explained by the decrease in External Debt from USD43.16 Billion as at June 30, 2023 to USD41.59 Billion as at September 30, 2023 and a relatively moderate increase of N1.80 Trillion in the Domestic Debt, the statement partly read.

External Debt decreased due to a redemption of a USD500 million Eurobond and the payment of USD413.859 million as first principal repayment of the USD3.4 Billion Loan obtained from the International Monetary Fund in 2020 during Covid-19.

The servicing of these Debts in addition to other Debts, are clear demonstrations of the FGN’s commitment to honouring its debt obligations.

Notwithstanding, Mr President’s initiatives and actions towards revenue generation remain important for Nigeria’s overall fiscal balance.