Nigeria’s debt service costs rise to N3.57 trillion in Q3 2024 – DMO 

This is according to the latest data from the Debt Management Office (DMO).

This increase reflects a combination of higher external debt service obligations and the impact of naira depreciation.

External debt servicing in Q3 amounted to $1.34 billion, translating to N2.14 trillion at the September exchange rate of N1,601.03/$, compared to $1.12 billion (N1.65 trillion) in Q2 at the June rate of N1,470.19/$. This represents a 29.70% rise in naira terms and a 19.44% increase in dollar terms.

The exchange rates used for the external debt were provided by the DMO in its reports.

The rise was primarily driven by higher obligations to multilateral and bilateral creditors, alongside significant interest payments on commercial loans.

Domestic debt servicing dropped to N1.43 trillion in Q3 from N1.86 trillion in Q2. Federal Government bonds continued to dominate, accounting for 87.41% of domestic debt service at N1.25 trillion, although this was a decline from N1.68 trillion in Q2.

Interest payments on Nigerian Treasury Bills (NTBs) rose significantly, reaching N168.53 billion in Q3 from N107.48 billion in Q2, marking a 56.8% increase. This suggests an increased reliance on short-term borrowing instruments.

Other components of domestic debt service showed minimal changes: 

Economic analysts have repeatedly raised concerns over the rising debt service burden, which continues to consume a significant portion of government revenue.