Nigeria spent N2.46 trn on debt servicing in three months – DMO

Data from the Debt Management Office (DMO) indicates that Nigeria spent N2.46 trillion to service N121.67 trillion public debt in the first quarter of 2024.

The N2.46 trillion comprises N1.47 trillion foreign debt service payments ($1.12 billion converted using Nigerian Autonomous Foreign Exchange Market rate for March ending N1,309.36) and N989.24 billion domestic debt service payments.

According to the DMO, the public debt for Q1’24 comprises an external debt of N56.02 trillion ($42.12 billion) and a domestic debt of N65.65 trillion ($46.29 billion).

The Office also said that the domestic debt for the 36 states and the Federal Capital Territory stood at N4.07 trillion in Q1’24.

”Excluding Naira exchange rate movements in Q1’24, only the domestic debt component of Total Public Debt grew from N59.12 trillion on December 31, 2023, to N65.65 trillion on March 31, 2024,” DMO said.

“The increase was from new borrowing to part-finance the 2024 budget deficit and securitization of a portion of the N7.3 trillion Ways and Means Advances at the Central Bank of Nigeria, CBN.

“Whilst borrowing, as provided in the 2024 Appropriation Act, will continue, we expect improvements in the government’s revenue to enhance debt sustainability.”