- New data released by the Debt Management Office (DMO) shows a significant rise in debt management in Nigeria
- The agency revealed that debt service increased by 277.64% in the third quarter of 2023
- The report shows that Nigeria has successfully serviced debts from China, the World Bank and Eurobonds
Pascal Oparada has over ten years of experience in technology, energy, stocks, investments and economics.
Nigeria spent about 277.64% on external debt servicing in the third quarter of 2023, data from the Debt Management Office (DMO) showed.
Data analysis indicates that external debt service reached $368.26 million in the second quarter of 2023.
Source: Facebook
The top three expenditures for external debt service
The figure rose to $1.39 billion, showing an increase of 277.64% in the three months under review.
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DMO used N768.93 per dollar as the exchange rate in calculating the value of the naira for external debt servicing.
according to dmo data, The top three spending items on external debt service for the third quarter of 2023 include Eurobonds worth $943.661 million, the World Bank’s International Development Association (IDA) worth $212.038 million, and Exim Bank of China worth $137.191 million.
The debt office said in a statement today, Wednesday, December 20, 2023, that the external debt declined as a result of the redemption of international bonds worth $500 million, the repayment of $413.859 million as an initial payment, and the amount of $3.4 billion loan obtained from the International Monetary Fund (IMF) during the pandemic. Covid-19 in 2020.
Debt Management Office data did not show any IMF debt service.
Nigeria increases debt servicing
Reports say There was a significant increase of 237.06% in total debt service, including external and domestic debt.
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Nigeria spent about 2.86 trillion naira on debt servicing in the third quarter of 2023, higher than the 849.05 billion naira spent in the second quarter of this year.
Domestic debt rises in 2023
The country spent about 5.20 trillion naira on debt servicing in the first nine months of 2023, including 3.23 trillion naira in domestic debt and $2.56 billion in external debt servicing.
Domestic debt service rose by 216.76% per quarterly analysis from N565.88 billion in the second quarter of 2023 to N1.79 trillion in the following quarter.
Nigeria’s domestic debt stock increased by N1.80 trillion to N50.196 trillion with the external debt stock declining by $1.57 billion in the third quarter of 2023 from $43.16 billion to $41.59 billion as of September 30, 2023.
‘You have a revenue problem’: Despite N87 trillion debt stock, IMF says Nigeria is not in debt distress
Legit.ng reported Despite Nigeria’s crippling debt of 87 trillion naira, the International Monetary Fund has said that Africa’s largest economy is not in debt distress.
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This was stated by the International Monetary Fund on Friday, October 13, 2023, at the IMF-World Bank conference held in Marrakesh, Morocco.
According to the Debt Management Office (DMO), a BusinessDay report says Nigeria’s public debt stood at 87 trillion naira in June 2023 and is expected to exceed 37% of GDP by the end of the year.
Source: Legit.ng