Nigeria Spent Over 60 Billion Naira Servicing Foreign Debt In Q3 – DMO
Between July and September
this year, the Nigerian government spent $197.29 million, about 60 billion
naira paying back money it borrowed from overseas.
These debts according to the Debt Management Office, DMO – the agency in charge of government debts – included ones owed foreign countries and international agencies.
Some of these loans borrowed from other countries and which is now being repaid include the loans for the Nigeria Communication Satellite, Nigeria National Public Security Communications System, Nigeria Railway Modernisation Project, Abuja Light Rail Project, Nigeria ICT Infrastructure Backbone Project, four airport terminals expansion project and the Zungeru hydroelectric project.
On the other hand, commercial loans or Eurobonds, accounted for the highest foreign debt payment as it gulped 53% of the country’s external loan commitment within the three-month period.
Nigeria had in recent times obtained four Eurobonds funding with maturity dates ranging from 2018 to 2032.
Recall that the Federal Government had recently made a commitment to borrow more from outside the country to reduce the huge debt servicing burden posed by heavy borrowing at home.
Apart from reducing the huge debt servicing costs, the government believes that this strategy will help private sector players to get more access to the local debt market as well as provide foreign exchange to lubricate the country’s challenged foreign exchange market.
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