Nigeria spent N1.02 trillion servicing debt in three months

Domestic and foreign debt service gulped over N1.02 trillion from the coffers of the Federal Government in the first quarter of this year, a report by Debt Management Office (DMO) revealed.

The debt service ratio rose by 35.7 percent when compared to the N753.7 billion spent during the same period in 2020, at a time 99 percent of government revenue was consumed by debt.

External debt accounted for N410.1 billion of the amount spent on debt service in Q1 2021, while domestic debt service gulped N612.71 billion.

Domestic debt breakdown

FGN Bonds got N537.78 billion, surpassing the N239.46 billion recorded in first quarter of last year. It was gathered that N31.44 billion was paid as principal repayment as well.

Nigerian Treasury Bills received N35 billion to service debt owed.

External debt breakdown

Multilateral loans received $134.04 million as debt service, with $104.4 million given to International Development Association, $16.21 million to AFDB, and $9.5 million to African Development Fund.

Bilateral loan accounted for $106.3 million, while Euro bonds received $763 million.