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Debt servicing doubles, hits N896bn in three months – DMO report

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According to reports obtained by Live News, Nigeria’s debt servicing bill has increased by 109 per cent to N896.56bn.

Debt servicing doubles, hits N896bn in three months – DMO report

Debt servicing doubles, hits N896bn in three months – DMO report

As a result, the country has also spent N3.83tn on debt servicing payments in 15 months, according to data obtained from the Debt Management Office.

While debt servicing payments cost N2.93 trillion in 2021, they cost N896.56 billion in the first quarter of 2022.

Between October and December 2021, Nigeria spent N310.5 billion on domestic debt servicing and $286.35 million (N118.9 billion) on external debt servicing, totaling N429.4 billion.

Nigeria, on the other hand, paid N668.69 billion on domestic debt servicing and $548.79 million (N227.87 billion) on overseas debt servicing between January and March 2022, totaling N896.56 billion.

The external debt servicing was done using the Central Bank of Nigeria’s official exchange rate, which was $1 = N415.22 as of June 15, 2022.

This means that the amount spent on debt servicing increased by 109 percent from December 2021 to March 2022, from N429 billion to N896 billion.

Nigeria’s debt situation deteriorated in the first quarter of this year, as the country’s debt stock increased by N2.04 trillion to N41.60 trillion, up from N39.56 trillion in December 2021.

Nigeria spent N612.71 billion on domestic debt servicing and $1 billion (N415.22 billion) on external debt servicing between January and March 2021, totaling N1.03 trillion.

From April to June 2021, the country spent N322.7bn on domestic debt servicing and $299m (N124.15bn) on external debt servicing, showing a total of N446.85bn.

From July to September 2021, Nigeria spent N808.49bn on domestic debt servicing and $520.78m (N216.24bn) on external debt servicing, giving a total of N1.02tn.

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