Nigeria’s domestic debt service soars to 46%, costing Nigeria N1.33 trillion in six months

Nigeria’s domestic mid-year debt service reaches an all time high at N1.33 trillion
The period under review is the first half of 2022
Nigeria’s economy is currently running on a fiscal deficit

The debt management office just reported that Nigeria spent N1.33 trillion servicing its domestic debts in the first half of 2022.

This indicates a 19.2% increase when compared to the second half of last year, which stood at N1.19 trillion. When compared to the figures of the same period last year, the increase represents a 42.5%, as N935.46 billion was spent on domestic debt service in the first half of 2021.

Nigeria’s domestic debt stood at $63.25 billion, while external debt was $40.06 billion.

Nigeria’s total debt stock rose to a record high of $103.31 billion as of June 2022, from N41.61 trillion recorded in its last quarter.

On its debt service, the country spent the most in the month of April 2022 at N529.881 billion, followed by the N376.44 billion spent in the previous month.

Nigeria’s debt continues to increase as the amount its allocates to spending, continues to out weigh its revenue.

The data on Nigeria’s domestic debts reveals that FGN bonds accounted for the giant share with N15.19 trillion, representing 72.53% of the total, followed by Nigeria Treasury Bills with N4.5 trillion (21.5%).

Also, FGN Sukuk accounted for 2.92% with N612.56 billion, promissory noted at N514.94 billion, while TBills stood at N75.99 billion and FGN Savings Bond at N20.87 billion.

So far, the sum of N892.1 billion has been allocated to servicing FG bonds during the half year, accounting for 66.9% of the total payment.

In addition, 21.5% of the total domestic debt service payment was made on promissory notes having spent N286.67 billion, while N110.86 billion was spent on Nigerian Treasury Bills.

Others include N715.99 million on FGN Savings Bond, N41.3 billion on Sukuk rentals, and N1.8 billion on FGN Green Bonds.