According to data from the Debt Management Office (DMO), the federal government spent N1.87 trillion in the first half of 2022 repaying loans that had reached maturity.
The loans come in two varieties: those from citizens and those from nations and organisations abroad (domestic market).
This was indicated in DMO’s most recent debt report, which was posted on its website on Tuesday.
According to the report’s breakdown, N1.33 trillion of the entire debt service was paid to domestic creditors, and N536.16 billion was paid to foreign creditors.
Creditors who purchased Nigerian Treasury Bills, Federal Government Bonds, Federal Government Green Bonds, Federal Government Savings Bonds, Promissory Notes (principal), and Federal Government Sukuk received domestic debt servicing payments.
Given that they received N892.06 billion in the first half of this year, or 66.9% of the total payments made by the federal government, investors in federal government bonds received the majority of the domestic debt servicing payments.
Promissory note (principal) investors got N286.67 billion, or 21.5% of the total debt service payments made in the first half of 2022, as payment.
Payments were paid to multilateral organisations, bilateral organisations, commercial creditors, and others for servicing foreign debt.
By receiving N848.33 million, commercial external creditors got 65.7 per cent of the total debt servicing payments made to external creditors in the six months ended June 2022.
Multilateral creditors received N278.62 million, representing 21.6 per cent of the total payments, while bilateral creditors received N165 million, amounting to 12.8 per cent of the total debt servicing made by the Nigerian government.
