Nigeria has disbursed a total of $3.5 billion to service its external debt stock of $42.5 billion throughout 2023, according to data released by the Debt Management Office (DMO). Eurobonds accounted for the majority of this expenditure, representing 55% of the total sum.
Breakdown of Debt Servicing
Commercial Loans (Eurobond)
– Eurobonds constituted 55% of the total debt service cost, amounting to $1.93 billion.
Multilateral Debt
– Multilateral debt servicing accounted for 35% of the total, reaching $1.2 billion.
Bilateral Debt
– Bilateral debt service costs comprised 10% of the total, totaling $344 million.
Fourth Quarter Figures
Between October and December 2023, Nigeria spent over $943 million on servicing its external debt. During this period:
– Multilateral institutions received the largest share, with 59% of the total external debt service cost.
– Eurobonds accounted for 39% of the debt service cost for the quarter.
– Bilateral debt service costs stood at 3%, amounting to $27 million.
Public Debt Stock Increase
The DMO reported a 10.7% increase in Nigeria’s total public debt stock, rising from N87.87 trillion in Q3 2023 to N97.34 trillion in Q4 2023. This increase was attributed mainly to new domestic borrowing by the federal government and disbursements from multilateral and bilateral lenders.
– Domestic debt amounted to N59.12 trillion, constituting 61% of the total public debt stock.
– External debt stood at N38.22 trillion, making up the remaining 39%.
Debt Management Strategy
Nigeria’s external debt stock primarily comprises loans from multilateral and bilateral lenders, totaling 63.79%. These loans are largely concessional and semi-concessional, aligning with the country’s debt management strategy.
Bottom Line
The DMO emphasized its commitment to best practices in public debt management. It also highlighted the importance of ongoing fiscal efforts to increase revenue, which will contribute to debt sustainability in Nigeria.
