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The Federal Government of Nigeria has allocated N2.34 trillion for debt servicing over the past six months.
According to a recent report from the Debt Management Office (DMO), Nigeria’s debt servicing expenditure reduced to ₦849.58 billion during the second quarter of 2023. This represents a notable 43.04% decrease compared to the ₦1.49 trillion spent on debt servicing in the preceding quarter of 2023.
DMO data indicates that in the first quarter of 2023, Nigeria earmarked N874.13 billion for servicing its domestic debt, alongside $801.36 million (equivalent to N617.35 billion) for servicing its external debt, totaling N1.24 trillion.
For further context, servicing costs for domestic debt amounted to N565.88 billion, while expenses related to external debt servicing reached $368.26 million (equivalent to N283.7 billion). This combined to a total of N1.24 trillion, as per information acquired from the DMO.
It’s important to note that an exchange rate of $1 to N770.38 was applied for external debt servicing.
