Nigeria Successfully Repays Chinese, World Bank Loans as Debt Servicing Jumps by 277.64 Per Cent
- New data from the Debt Management Office (DMO) shows a spike in debt management in Nigeria
- The agency revealed that debt servicing spiked by 277.64% in the third quarter of 2023
- The report shows that Nigeria successfully serviced debts from China, the World Bank and Eurobonds
Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
Nigeria spent about 277.64% on external debt servicing in Q3 of 2023, data from the Debt Management Office (DMO) shows.
An analysis of the data indicates that external debt servicing stood at $368.26 million in the second quarter of 2023.
Source: Facebook
Top three external debt service expenditure
The figure increased to $1.39 billion, showing a 277.64% rise in the three months under review.
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The DMO used N768.93 per dollar as the exchange rate in calculating the naira value for external debt servicing.
According to DMO data, the top three external debt service expenditure items for the third quarter of 2023 include Eurobonds at $943.661 million, the World Bank’s International Development Association (IDA) at $212.038 million, and the Exim Bank of China at $137.191 million.
The debt office said in a statement on Wednesday, December 20, 2023, that external debt declined due to the redemption of a $500 million Eurobond and payment of $413.859 million as the primary repayment and the amount of $3.4 billion loan obtained from the International Monetary Fund (IMF) during COVID-19 in 2020.
The DMO data did not show any debt service to the IMF.
Nigeria increases debt servicing
Reports say there has been a significant increase of 237.06% in total debt servicing, including external and domestic debt.
Nigeria spent about N2.86 trillion on debt servicing in Q3 of 2023, higher than the N849.05 billion spent in the second quarter of this year.
Domestic debt rises in 2023
The country spent about N5.20 trillion on debt servicing in the first nine months of 2023, including N3.23 trillion in domestic debt and $2.56 billion in external debt servicing.
Domestic debt servicing increased by 216.76% per a quarterly analysis from N565.88 billion in the second quarter of 2023 to N1,79 trillion the following quarter.
Nigeria’s domestic debt stock rose by N1.80 trillion to N50.196 trillion as external debt stock dropped by $1.57 billion in Q3 of 2023 from $43.16 billion to $41.59 billion as of September 30, 2023.
"You've revenue problem": Despite N87 trillion debt stock, IMF says Nigeria not in debt distress
Legit.ng reported that despite Nigeria's debilitating N87 trillion debt profile, the International Monetary Fund (IMF) has said that Africa's largest economy is not in debt distress.
The IMF said this on Friday, October 13, 2023, at the ongoing IMF/World Bank Conference in Marrakesh, Morocco.
According to the Debt Management Office (DMO), a BusinessDay report says that Nigeria's public debt hit N87 trillion in June 2023 and is estimated to cross 37% of GDP by the end of the year.
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Source: Legit.ng
