The Federal Government of Nigeria spent approximately N1.79 trillion on servicing its domestic debt between July and September 2023, according to the Domestic Debt Service Report for the third quarter published by the Debt Management Office (DMO). The report reveals the breakdown of the debt service payments on various instruments, including NTBs (Nigerian Treasury Bills), FGN bonds, treasury bonds, FGN savings bonds, and FGN Sukuk bonds.
Here’s a summary of the domestic debt service payments for each month in Q3 2023:
July:
- Total domestic debt service: N268.10 billion
- NTBs interest payment: N27.84 billion
- FGN bonds interest payment: N240.08 billion
- FGN Savings bonds interest payment: N178.51 billion
August:
- Total domestic debt service: N696.52 billion
- NTBs interest payment: N34.83 billion
- FGN bonds interest payment: N661.42 billion
- FGN Savings bonds interest payment: N262.56 billion
September:
- Total domestic debt service: N827.84 billion
- NTBs interest payment: N51.99 billion
- FGN bonds interest payment: N739.11 billion
- Rentals for FGN Sukuk bonds: N8.3 billion
- FGN Savings bonds interest payment: N304.87 billion
- Interest on Treasury bonds: N3.12 billion
- Principal payment: N25 billion
The report highlights that the interest payment on FGN bonds for September includes securitized Ways and Means for September 2023, which is not yet verified. It also notes that all FGN securities that matured during the period were refinanced, except for Treasury Bonds and Promissory Notes with Sinking Fund provision.
Comparing the domestic debt service payments in Q3 2023 with the same period in the previous year (Q3 2022), there was a notable increase of 107.16%. Additionally, when compared with the preceding quarter (Q2 2023), the total debt service payment increased by 102.45%. In the first nine months of the year, the Federal Government spent approximately N4.13 trillion on domestic debt service.
The detailed breakdown provides insights into the government’s debt service commitments and the distribution of payments across different debt instruments during the specified period.
