Amarachi Orjiude and Sami Olatunji
Released October 5, 2021
Nigeria spent N1.47 trillion on debt servicing in the first half of 2021, data from the Debt Management Office shows.
In the first quarter of the year, the country gave 1.02 trillion. N on both domestic and external debt servicing, while a total of N 445.45 billion was spent in the second quarter of 2021.
From January to March 2021, Nigeria spent N 612.71 billion on domestic debt servicing while it spent $ 1 billion (N 410.33 billion) on external debt servicing.
From April to June 2021, Nigeria spent N322.7 billion on domestic debt servicing and $ 299 million (N 122.7 billion) on external debt servicing.
The official exchange rate of the Central Bank of Nigeria ($ 1 equals N410.33) as of October 4th was used for the external debt service.
For domestic debt, Nigeria spent N 219.29 billion in January, N 125.09 billion in February, N 270.33 billion in March, N 258 billion in April, N 42.4 billion in May and N in June N 22.3 billion.
In the first quarter, the government focused on capital repayments, while the government focused on interest payments in the second quarter.
A breakdown of the statistics in the second quarter shows that the federal government spent a total of N322.7 billion on the payment of interest and N50.3 billion on the repayment of due Nigerian Treasury Bills.
For the first quarter foreign debt service, 76 percent was for commercial loans at a cost of $ 763.04 million.
For foreign debt servicing in the second quarter, commercial loans cost 53 percent at a cost of $ 157 million, and multilateral 35 percent at a cost of 103.7 million had a cost of $ 38.2 million . N).
Economists have repeatedly condemned government lending rates on the premise that the loans were spent on consumer spending and not on capital projects that can generate income to service the debt.
The apolitical economist and former presidential candidate, Prof. Pat Utomi, had stated that the government spends much of its income on debt servicing because the federal government borrowed to fund other expenses it had made during this period.
He added that the trend of continued borrowing would continue to worsen the country’s economic conditions.