From January to March this year, Nigerian government spent a total of 923.3 billion naira repaying loans and interests on loans borrowed from Nigerian investors.

According to statistics from the Debt Management Office, a total of 643.63 billion naira was spent on the payment of interest, while 279.67 billion naira was expended on the redemption of matured Nigeria Treasury Bills between January and March 2018.

Interest rate on FGN Bonds gulped a total of 411.8 billion in the first quarter of the year, while interest payment on the Sukuk Bond added up to 8.17 billion naira.

Similarly, the Federal Government paid 223.42 billion naira as interest on the treasury bills and 241.87 million naira as interest on FGN Savings Bonds.

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The cost of servicing the debt reflects Nigeria’s rising debt profile, especially domestic debt although efforts are being made to reduce the domestic debt commitment in favour of more foreign loans.

In accordance with this strategy, the World Bank only last week announced that it would support seven projects in the country this year with a loan of $2.1 billion, while plans to borrow from other foreign sources are on.

These statistics also indicates a significant rise in the amount spent servicing domestic debts when compared to the same period in 2017.

In the first quarter of 2017 for instance, the Federal Government spent a total of 449.06 billion naira on the payment of interest on loans, while it paid 25 billion naira on the redemption of matured treasury bonds.

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