Fiscal irresponsibility: FG to pay 153% interest on external debt
The Federal Government’s inability to service Nigeria’s external debt has increased interest on principal by 152.29 percent, according to the Debt Management Office (DMO).
Tag
Nigeria to spend 76 per cent of revenue on debt servicing by 2025, how sustainable is this?
The Debt Management Office, in a press statement, noted that Nigeria’s debt profile could reach N77 trillion by May 2023. The agency pointed out that this is due to the addition of Ways and Means (loans sourced from the Central Bank of Nigeria) totaling N22.72 trillion.
#ChartoftheDay: Nigeria’s Debt Burden
Nigeria presently owes a total of N35.5 trillion according to the report published by the Debt Management Office (DMO) as of June 2021. Of this sum, N13.7 trillion is the total external debt and N21.8 trillion is the total domestic debt.
Nigeria spent more servicing accrued loan interest than principal in last quarter 2020
Nigeria’s debt profile increased by 2.15% in the fourth quarter (Q4) of 2020 to close at ₦32.92 trillion. The fourth quarter saw external debt increased by 4.26%, while domestic debt increased by 0.87%. Total external debt at the end of Q4 was ₦12.71 trillion, and domestic debt closed at ₦20.21 trillion.