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Monday, May 16, 2022

Nigeria spends N612.7 bln to service domestic debt in 3-month ~debt office

…Lagos leads other states in debt profile at N507.37 bln

By Oludare Mayowa

Nigeria spent a total of N612.71 billion to service its domestic debt in the first three months of 2021, according to the Debt Management Office (DMO) in its latest debt profile of the country.

The country also paid a total of N31.44 billion in principal repayment out of the federal government N16.51 trillion component of domestic debt as of March ending.

A breakdown of the debt service showed that the government spent N123.29 billion to service its domestic debt in January, N123.09 billion in February and N270.33 billion in March.

Nigeria currently owned a total of N12.46 trillion in local bonds, N2.60 billion in Treasury Bills and N362.55 billion in outstanding Islamic Sukuk bonds.

Also, the country’s outstanding debt on savings bonds stood at N14.39 billion, Green bonds stood at N25.69 billion while N940.22 billion is outstanding on Promissory Notes.

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The debt office said the Promissory Notes was issued to settle the inherited arrears of the FGN to State Governments, Oil Marketing Companies, Exporters and Local Contractors.

The country’s domestic debt grew by 2.11 percent to N20.64 trillion as of March 31, 2021, from N20.21 trillion in December 2020.

A breakdown of the domestic debt showed that while the federal government owed a total of N16.51 trillion as of March 2021, states and federal capital territory owed the balance of N4.12 trillion.

Meanwhile, according to the data released by the DMO, Lagos State continues to emerge to the most indebted state in the country.

Lagos’s outstanding debt is totaled N507.37 billion as of March ending, while Rivers State debt came a distance second with an outstanding of N266.936 billion debt, Akwa Ibom owed N232 billion and Delta, N213.982 billion.

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