Nigeria’s debt servicing instruments rises N2.18tn in 10 months
Nigeria’s debts acquired through instruments issued by the Federal Government in the capital market totaled N2.18 trillion as of October 2021.
Analysis of Data from listed debt instruments on the FMDQ Exchange showed that repayments by FG on bonds, promissory notes, Sukuk, savings and green bonds altogether amounted to N2.18 trillion.
The Debt Management Office of Nigeria had disclosed in its Actual Domestic Debt Service reports for January-March and April-June that the Federal Government’s total domestic debt servicing gulped N546.25 billion and N307.87 billion, respectively.
FG bond payments are structured with coupons paid semi-annually and are used to fund specific infrastructure projects.
This meant the FG spent N854.12 billion servicing capital market debts in the first half of the year.
The Federal Government completed the payment of its NGFG132021S0 July 2016 N561.05billion with 14.5 per cent coupon as it paid a N20.3 billion tranche in February and another N20.3 billion in July, totaling N601.73 billion.
The Federal Government serviced its NGFG9B2022S1 Jan 2022 N605.31 billion bond with 16.39 per cent coupon as it paid N99.21 billion in two tranches of January and June payments.
The Federal Government serviced another 12.75 per cent coupon April 2023 N735.96 billion bond with payment of N93.83 billion in two tranches, April and October.
