A new report by the Debt Management Office (DMO) said the Nigerian government spent N2.34 trillion on debt service in six months.
The country’s debt service spending fell to N849.58 billion in the second quarter of 2023, representing a 43.04% decline from the N1.49 trillion spent in the first quarter of the year.
The report revealed that in the first quarter of 2023, Nigeria allocated N874.13 billion to service domestic debts and $801.36 million (equivalent to N617.35 billion) for external debt service totalling N1.24 trillion.
The service expenses amounted to N565.88 billion, while external debt service costs reached $368.26 million (N283.7 billion), resulting in a combined total of N1.24 trillion.
The exchange rate of the DMO, which was $1 to N770.38, was used for external debt servicing.
In contrast to the previous quarter, during which Nigeria allocated around $131.13 million for servicing Exim Bank of China loans, no funds were dedicated to Chinese loan servicing in the first quarter of 2023, as reported by DMO.