Debt service gulps N2.46tn – DMO

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*DMO DG, Patience Oniha

The Debt Management Office said Nigeria spent N2.46 trillion to service N121.67 trillion ($91.46 billion) of public debts in the first quarter of 2024.

It stated in a post on its website that the N2.46 trillion comprised N1.47 trillion foreign debt service payments ($1.12 billion converted using Nigerian Autonomous Foreign Exchange Market rate for March ending N1, 309.36) and N989.24 billion domestic debt service payments.

DMO noted that the public debt for Q1’24 comprises an external debt of N56.02 trillion ($42.12 billion) and a domestic debt of N65.65 trillion ($46.29 billion).

In addition, it disclosed that the domestic debt for the 36 states and the Federal Capital Territory stood at N4.07 trillion in Q1’24.

“Excluding naira exchange rate movements in Q1’24, only the domestic debt component of total public debt grew from N59.12 trillion on December 31, 2023, to N65.65 trillion on March 31, 2024.

“The increase was from new borrowing to part-finance the 2024 budget deficit and securitization of a portion of the N7.3 trillion ways and means advances at the Central Bank of Nigeria, CBN.

“Whilst borrowing, as provided in the 2024 Appropriation Act, will continue, we expect improvements in the government’s revenue to enhance debt sustainability,” the DMO declared.