Nigerian Govt’s Debt Servicing Hits N1.87trn

The Debt Management Office (DMO) has revealed that the federal government, in the first six months of 2022, spent N1.87 trillion repaying matured loans.

The loans include those obtained from foreign countries and organizations and those obtained from citizens (domestic market).

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

A breakdown from the report shows that out of the total debt service, N1.33 trillion went to domestic creditors while N536.16 billion was to foreign creditors.

Domestic debt servicing was paid to creditors that invested in the Nigerian Treasury Bills, Federal Government Bonds, Federal Government Green Bonds, Federal Government Savings Bonds, Promissory Notes (principal), and Federal Government Sukuk.

The bulk of the domestic debt servicing payments was made to creditors that invested in the federal government bonds, as those creditors received N892.06 billion in the first half of this year, representing 66.9 per cent of the total payments made by the federal government.

Creditors that invested in promissory notes (principal) received N286.67 billion, representing 21.5 per cent of the total debt servicing payments during the first half of 2022.

Foreign debt servicing payments were made to multilateral institutions, bilateral institutions, commercial creditors and others.

By receiving N848.33 million, commercial external creditors got 65.7 per cent of the total debt servicing payments made to external creditors in the six months ended June 2022.

Multilateral creditors received N278.62 million, representing 21.6 per cent of the total payments, while bilateral creditors received N165 million, amounting to 12.8 per cent of the total debt servicing made by the Nigerian government.

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