Nigeria Successfully Repays China, India, Germany $1.81bn, Services CBN Loans With N912bn
- The Nigerian Government paid interest on its external debts by about $1.81 billion in the first seven months of 2023
- The breakdown of the external debt servicing shows that the amount increased over time in the last seven months.
- June and July witnessed the highest amount spent on debt servicing within the period.
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New Data from the Central Bank of Nigeria (CBN) has shown that the Nigerian Government has allocated a significant $1.81 billion to service foreign debts during the first seven months of 2023.
An analysis of the amount shows that in January 2023, the Nigerian Government set aside $112.35 million to service foreign debt.
February saw a higher debt servicing of $288.5 million, while March witnessed a substantial expense of $400.5 million.
Source: Facebook
A breakdown shows Tinubu's government spent the most on debt servicing
The Federal Government spent $92.8 million in April, revealing careful financial management practices. In May, the Nigerian Government serviced external debts with $221 million.
June saw an exponential increase in the amount used in debt servicing at $543 million, while July experienced another increase to $642 million, marking the highest figure in 14 months.
A further breakdown reveals that the total direct diaspora remittances from January to July this year amounted to $1.9 billion.
ThisDay reports that the diaspora inflow is critical in balancing Nigeria’s external financial obligations.
Nigeria witnesses increased diaspora remittance
The breakdown of the diaspora remittances shows that in January, direct remittances accounted for $79.2 million, showing a constant financial inflow.
In February, Nigerians abroad sent home about $83.76 million, showing financial stability.
In March, Nigeria witnessed a diaspora inflow of $138.6 million, while in April, a total of $159.04 million was remitted.
In May, diaspora remittances increased to $202 million, showing Nigeria’s financial strength, while in June, diaspora remittances increased further by $297.4 million before witnessing a slight decline in July, with $241 million remitted to Nigeria.
Legit.ng earlier reported that Nigeria spent about $1.7 billion on debt serving in the first half of 2023.
The amount increased with additional funds released for external debt obligations.
Tinubu’s government serviced CBN loan with N912.32 billion in 3 months as debt profile hits N87trn.
Legit.ng also reported that the Nigerian Government paid an interest of N912.32 billion in the first three months of 2023 on the loans it obtained from the CBN.
The Budget Office revealed the amount in the 2023 Budget Implementation report for the first quarter.
The amount spent paying interest on the loan is about 161.47% higher than the N348.92 billion spent in the same quarter last year.
Source: Legit.ng
