FG’s Domestic Debt Service Gulped N4.38tn in 2023, Says DMO

·      FGN Bond accounted for 83.1%  of domestic debt obligations

·      Lagos, Delta, Ogun, Rivers are most indebted states

Ndubuisi Francis in Abuja

A total of N4.381 trillion (N4, 381,207,357,790.30) went into the servicing of Federal Government of Nigeria’s domestic debt obligations between January and December 2023, the Debt Management Office (DMO) disclosed at the weekend.

FGN’s domestic debt profile stood at N53.258 trillion as at December 31, 2023.

A month-by-month analysis showed that the sum of N244.56 billion was expended on debt service in January 2023, N146.4 billion in February, N483.14 billion in March, and N448.952 billion in April.

For the month of May, debt service gulped N48, 359 billion, June was N68.572 billion, 833, while July and August were N268.1 billion and N175.526 billion, respectively.

A total of N496, 959 billion, N463.54 billion, 1.196 trillion (the highest for the year) and  N340.378 billion were committed to debt service for the months of September,  October, November and December, respectively.

Debt instruments accounting for the N4.38 trillion debt service during the reference period were the Nigerian Treasury Bills (NTBs) N326.122 billion; Federal Government Bonds N3.663 trillion; Treasury Bonds N6.373 billion; Green Bonds N2.175 billion; and FGN Sukuk Bonds N103.25 billion.

Others are FGN Savings Bond (FGNSB) N2.866 billion; and Promissory Notes.

At 83.1 per cent or N44.26 trillion, FGN Bonds accounted for the largest chunk of FGN’s N53.258 trillion domestic debt obligations as of December 31, 2023, followed by NTBs at N6.522 trillion or 12.25 per cent, and Promissory Notes at N1.329 trillion or 2.5 per cent.

FGN Sukuk accounted for 2.05 per cent or N1, 092 trillion of the FGN domestic debt profile.

FGNSB accounted for N39.177 billion or 0.07 per cent while Green Bonds constituted N15 billion or 0.03 per cent of the FGN’s domestic debt obligations as at December 31, 2023.

Meanwhile, at the subnational level, Lagos, Delta, Ogun and Rivers are leading debtor states with the highest domestic debt burden as at December 31, 2023.

While Lagos State owed a total of  N960.495 billion (N960,495,545,836.25) during the period under review, Delta State was next with N371.485 billion (N371,485,618,063.33), and Ogun State N293.2 billion (N293,204,959,775.19).

Ogun State was trailed by Rivers State with N232.57 billion (N232, 576,206,164.34).

The last updated debt figures for Ogun, Rivers and Katsina states were as at March 31, 2023.

DMO said the domestic debt burden of the 36 states and the FCT stood at N5 741 trillion (N5, 741,042,103,518.56) as of December 31, 2023.

Jigawa State retained its spot as the least indebted state, with a profile of N42 89 billion (N42,890,049,833.19), followed by Kebbi with N60.875 billion (N60,875,509,315.16).