The Federal Government has spent over $15.55 billion on debt servicing between 2019 to 2024.
The Central Bank of Nigeria reported this in its latest data.
Nigeria paid $588.33 million for debt servicing in 2019, from January to May and paid $5.40 billion in 2024.
The debt service payments rise continuously over the years, with $2.02bn paid in 2021, $2.34billion in 2022, and $3.43billion in 2023.
CBN reported that between January and May 2024, the country has paid $2.18billion in debt service.
This has been the highest debt servicing paid in Nigeria for the past 5 years.
“There is 270.9 percent increase compared to the first five months of 2019 which was $588.33million. The $2.18billion, in May 2024 is nearing half of the $4.8billion,” says a Fitch Ratings report.
This increase is despite the government’s assertions that it is shifting its focus towards domestic borrowing.
“This breakdown comprises $1.9bn in market debt payments and $1.6bn in non-market debt payments. Furthermore, the Federal Government plans to take on additional external debt, including N1.8tn in commercial borrowing and N1.1tn in concessional loans, as outlined in the 2024 budget.”
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said, “We have undertaken bold and necessary reforms to restore macroeconomic stability and put Nigeria on a path to sustainable and inclusive economic growth. These reforms will create quality jobs and economic opportunities for all Nigerians.”
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