The federal government of Nigeria spent $25.82 billion, about 7.8 trillion naira to service its debts between 2012 and 2016.

Despite the impact of recession, the federal government continues to borrow - as both its local and foreign debt portfolios continue to swell.

Also Read: Dependence On Crude Oil Costs Nigeria 3 Trillion Naira Annually

According to the Debt Management Office, DMO in its 2016 Annual Report and Statement of Accounts, it showed that the amount used to service the Federal Government’s debt declined from $5.49 billion in 2015 to $4.38 billion in 2016.

But it also noted that the Debt Sustainability Analysis of Nigeria’s profile showed that the situation has deteriorated.

The decline, DMO showed, was in nominal terms when converted to dollar following adjustment in the nation’s foreign exchange variation.

The official exchange rate was higher in 2015. However, much of the Federal Government’s debts are denominated in naira and interest rates are paid in naira.

You May Also Read: REVEALED: Why Nigeria's Economy Still Battles recession

Further statistics provided by the DMO showed that $4.92 billion was spent on debt servicing by the Federal Government in 2012; $5.52 billion in 2013; and $5.5 billion in 2014.

The DMO analysis of the country’s debt portfolio showed that for the first time since the country’s exit from the Paris Club debt overhang in 2005, Nigeria’s debt had slipped from low risk to medium risk distress – not good for an economy battling recession.