Debt servicing has continued to constitute a major threat to Nigeria’s economy as the Central Bank of Nigeria (CBN) disclosed that it has spent $2.56 billion to service the federal government’s foreign debt obligations in nine months of 2023. This represents 18 per cent Year-on-Year (YoY) increase from $2.17 billion in nine months of 2022. The international payment data released by the CBN showed that from 2011 to 2021, the amount paid to the World Bank, International Monetary Fund (IMF), Exim Bank of China, among others for debt service and payments have continued to mount amid weakening of the naira against the dollar. As gathered by THISDAY, the debt repayment was made only on behalf of the federal government and does not include states government debt services in the period under review. The breakdown of debt service showed that the average minimum and maximum amount paid on debt services stood at $92.85million and $641.7million between June and July 2023, respectively. The Debt Management Office (DMO) had disclosed that Nigeria’s total external debts stood at $43.16billion or N33.2115trillion as of June 2023. THISDAY gathered that in nine months of 2021, debt service stood at $2.13billion and $5.48billion in nine months of 2020.
THISDAY