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Nigeria’s external debt service cost crashes by 16.67%

By on October 8, 2013

The Debt Management Office (DMO) has reported a 16.67 per cent drop in the amount committed annually to servicing the nation’s external debt from $351.62 million in 2011 to $293 million in 2012.

According to the DMO’s 2013 annual National Debt Sustainability (DSA) report released over the weekend, while the amount spent on servicing external debt obligations nosedived however, the cost of servicing Nigeria’s domestic debt obligation rose by 34.88 per cent from $3,429.42 in 2011 to $4, 625.72.

The DMO’s 2013 DSA annual report said Nigeria’s total public debt service (comprising external and domestic debt service of both federal government and states) rose to $5,550.70 million or 24.25 percent in 2012 from $ 4,467.25 million in 2011.

Of the total debt service in 2012, FGN and states domestic debt accounted for 94.72 per cent, while the balance of 5.28 percent went to external debt, an indication that external debt service showed a downward trend, while domestic debt increased significantly.

The debt management agency created in 2000, attributed the decrease in the external debt service to full redemption of some IBRD and ADB loans over the years and the reliance on the domestic bond market to largely meet FGN’s borrowings requirements since 2002.

Nigeria ‘s total public debt stock (domestic and external for FGN, states and FCT ) as at end December , 2012 stood at $58,004.58 million, representing an increase of $8,624.72 million or 17.45 percent over the amount recorded as at end –December, 2011.

The external debt component increased by $860.49million or 15 .19 percent over the amount recorded in 2011 to reach $6, 527 .07 million in 2012.

A further break down of domestic debt showed that domestic debt of the FGN accounted for $41,969.16 million or 72.43 percent of the total public debt stock, while the total domestic debt of the sub-nationals stood at $ 9,448.35 million or 16 .31 percent of the total public debt.

 

 

[Daily Independent]