Debt servicing rises to N1.17tr, up 28%
By Jeph Ajobaju, Chief Copy Editor
A total N1.17 trillion was spent on servicing local and foreign debt in the third quarter of the year ended September (Q3 2022), 27.9 per cent above N912.7 billion in Q2 2022.
Debt Management Office (DMO) debt service report for Q3 2022 shows domestic debt servicing cost N820.59 billion and foreign debt N346.43 billion ($801.24 million).
Total debt fell to $101.91 billion from $103.31 billion in Q2 2022. But measured in local currency, it rose to N44.06 trillion against N42.85 trillion in Q2 2022 because of the depreciation of naira against the dollar.
Official exchange rate depreciated from N414.72/$1 in July to close at N432.37/$1 in September, according to the DMO.
Other metrics in Q3 2022
- Eternal debt – $39.66 billion (N17.15 trillion)
- Federal domestic debt – $49.85 billion (N21.55 trillion)
- States’ domestic debt – $12.41 billion (N5.36 trillion)
- Total domestic debt – $62.25 billion (N26.92 trillion)
- Domestic debt service increased 23.4 per cent versus N664.73 billion in Q2 2022, the highest value on record
- External debt service cost surged 34 per cent from $597.95 million in Q2 2022
Monthly debt servicing in Q3 2022
- July – N248.72 billion
- August – N152.44 billion
- September – N419.42 billion
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Interest and principal payments
- Interest payments treasury bills – N94.99 billion
- Interest payment on FGN bonds – N685.61 billion
- FGN Sukuk Bonds rentals – N8.3 billion
- Interest payment on FGN savings bonds – N426.01 million
- Interest payment on treasury bonds – N6.25 billion
- Principal payment on Treasury bonds – N25 billion
- Total domestic interest payments – N795.59 billion
- Total principal domestic debt repayment – N25 billion
Budget deficit
Nigeria borrows to finance budget deficit as the revenue crisis lingers, writes Nairametrics.
Finance Minister Zainab Ahmed confirmed revenue was N4.233 trillion between January and August 2022 (8M 2022), during which debt servicing took N3.52 trillion.
An N4.23 trillion aggregate revenue means it underperformed 36.3 per cent compared with N6.65 trillion prorated budget for M8 2022.
Federal retained revenue underperformed 33.3 per cent at N3.67 trillion, in contrast to N5.49 trillion expected.