Nigeria’s Foreign Debt Service Gulps $1.17bn in 6 Months

Nume Ekeghe 

As the fereal government look inwards to fince key projects rather tan depend of borrowing, it has emerged that the federal government spent $1.17 billion to service foreign debt obligations in the first half of 2023.

This is according to the Export and International Payment data released released by the Central Bank of Nigeria (CBN).

The report showed that in January 2023, the federal government expended $112.35 million in servicing its foreign debts.

February saw a higher outlay of $288.5 million, followed by $400.5 million in March. April brought about a noteworthy expenditure of $92.8 million. 

May witnessed a total expenditure of $221 million to meet these obligations. However, the most striking aspect of this data was the month of June, which recorded an exceptionally high servicing cost of $543 million, marking the highest figure in 13 months.

Further analysis of the report showed that the total direct remittances for the first half of 2023 amounted to $951.99 million.

A detailed breakdown of the remittances showed that January accounted for $79.2 million, while February saw $83.76 million.

In March, a substantial sum of $138.6 million was recorded, and April followed with a remittance of $159.04 million.

As we move into the later months, May witnessed an influx of $202 million, and June saw a significant increase with $297.4 million in direct remittances.

The federal government had on Monday said it has no intention to borrow from any local or foreign organisation with its removal of subsidy on petrol and exchange rate harmonisation.

The Minister of Finance and Coordinating Minister for the Economy, Chief Wale Edun, stated this at the end of the inaugural Federal Executive Council meeting on Monday in Abuja.

Edun said that with the increased revenue from subsidy removal, various palliatives have been made available to cushion its effect on a short, medium and long-term basis.

He reiterated the President Bola Tinubu-led administration’s desire to bring back the economy from the wood it has found itself over time.