In a recent report released by the Debt Management Office (DMO), it has been revealed that the Federal Government of Nigeria spent a total of N2.34 trillion on debt servicing during a span of six months.

Further analysis from the DMO indicates that Nigeria’s debt servicing expenditure decelerated to ₦849.58 billion in the second quarter of 2023. This represents a notable 43.04% decline when compared to the N1.49 trillion spent on servicing debts in the first quarter of the same year.

Breaking it down, the data from the DMO outlines that in the first quarter of 2023, Nigeria allocated N874.13 billion for servicing its domestic debt and $801.36 million (equivalent to N617.35 billion) for external debt servicing, summing up to N1.24 trillion.

For the same period, servicing expenses related to domestic debt amounted to N565.88 billion, while the cost of servicing external debt reached $368.26 million (N283.7 billion), resulting in a combined total of N1.24 trillion. It is worth noting that the exchange rate of $1 to N770.38, as provided by the DMO, was employed for external debt servicing.