Within the past three years, Nigerian government had spent a total of 3.72 trillion naira to service local debts – (i.e. repaying money borrowed within Nigeria).

This is besides the one borrowed from abroad.

According to latest statistics from the Debt Management Office, DMO, the Federal Government spent a total of 1.48 trillion on actual debt servicing in 2017 alone.

With 1.23 trillion naira and 1.02 trillion naira spent on domestic debt servicing in 2016 and 2015, respectively, these add to a total of 3.72 trillion in the last three years.

Among the various instruments that the Federal Government used to borrow from the domestic debt market, the highest interest was paid on the FGN Bonds.

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In 2017, for instance, the Federal Government paid 982.66 billion naira on the FGN Bonds.

A total of 445.13 billion naira was paid on Nigerian Treasury Bills; 22.99 billion naira was paid on Treasury Bonds; while 25 billion naira of the principal was repaid.

An interest of 442 billion naira was paid on Savings Bonds.

The Federal Government has been spending considerable resources in recent times on the servicing of domestic debts, thereby raising questions on the sustainability of the debt burden.

However, the Federal Government has insisted that the nation’s debt burden is sustainable since it is less than 20% of the country’s Gross Domestic Product.

However, less revenues have made the payment of interest quite burdensome.

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