GOVERANCE

Nigeria Spends N1.17trillion On Debt Servicing In Q3 2022

 

 

Nigeria has spent a sum of N1.17 trillion on local and foreign debt servicing in the third quarter of 2022, representing a 27.9% increase compared to N912.7 billion during the previous quarter (Q2 2022).

This was disclosed by the Debt Management Office in the Nigeria’s debt service report for Q3 2022 released recently.

A breakdown of the report showed that N820.59 billion was spent on servicing domestic debts, while N346.43 billion (or $801.24 million) was incurred on foreign debt service costs.

Meanwhile, Nigeria’s total debt stock fell to $101.91 billion as of the end of September 2022 from $103.31 billion recorded as of June 2022.

However, measured in local currency, total debt stock rose to N44.06 trillion compared to N42.85 trillion recorded as of the previous quarter.

This was due to the depreciation of the local currency against the US dollar at the official market.

The official exchange rate depreciated from N414.72/$1 recorded as of the beginning of the review quarter to close the period at N432.37/$1, according to data from the DMO.

Total external debt stock stood at $39.66 billion (N17.15 trillion).

while the federal government domestic debt stood at $49.85 billion, an equivalent of N21.55 trillion, the States’ domestic debt also stood at $12.41 billion (N5.36 trillion) as of September 2022.

Total domestic debt stock was $62.25 billion as of the period under review, which is approximately N26.92 trillion in local currency.

Domestic debt service in Q3 2022 increased by 23.4% compared to N664.73 billion recorded in the previous quarter and represents the highest value on record. Also, external debt service cost surged by 34% from $597.95 million recorded in Q2 2022.

ALSO READ  NNPC, Morocco, ECOWAS Sign MoU On Gas Pipeline Construction

Further breakdown showed a sum of N248.72 billion was spent in July, N152.44 billion in August, while N419.42 billion was spent in September 2022 on domestic debt obligations. Also, N94.99 billion was incurred on interest payments on Nigerian Treasury Bills.

Additionally, N685.61 billion was spent as interest payments on Federal government bonds.

Other breakdown includes N8.3 billion spent on FGN Sukuk Bonds rentals, N426.01 million interest on FGN Savings Bonds, and N6.25 billion and N25 billion interest and principal payments respectively on Treasury bonds.

This brings the total domestic interest payments to a sum of N795.59 billion and a principal repayment of N25 billion.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button