Can Nigeria Ever Be Free From External Debt? Check out What The Country Paid in 2020

Nigeria’s debt servicing is milking the economy, yet the country is fully yet to fulfil its debt obligation. A total sum of $243 million was expended on debt servicing from January to December 2020.

This is contained in the latest public debt stock data released by the Debt Management Office.

The DMO explained that Nigeria’s new borrowings declined from N2.36 trillion in 2017 to N2.01 trillion in 2018 and N1.61 trillion in 2019.

This clearly shows that the country is not doing well in meeting up with paying back. At this rate, more than 80 years from now, the debts will still not have been fully paid.

Debt burden

It said the trend was reversed in 2020 due to the economic and social impact of the COVID-19, adding that borrowings grew to N4.20 trillion.

The data revealed that a total of $108.66 million, representating 45 percent, was spent to service debt with nine multilateral agencies, including Africa Development Bank and the European Development Fund.

A total of $100.507 million, representating 41 percent, was expended on servicing the 11 Eurobond and one diaspora bond raised by the federal government in 2020, while servicing obligations to bilateral lenders gulped $34.676 million.

In a similar document, the DMO said the government also spent N351.98 billion to service domestic debts between October and December.

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