Toba Owojaiye Reporting
In the first seven months of 2023, the Nigerian Government successfully repaid a total of $1.81 billion in external debts, with a noticeable increase in debt servicing as the months progressed. Notably, June and July witnessed the highest expenditures on debt servicing within this period.
Data from the Central Bank of Nigeria (CBN) reveals that the government allocated these funds for servicing foreign debts, with a breakdown of the allocations as follows: In January 2023, $112.35 million was designated for debt servicing. February saw a higher figure of $288.5 million, while March incurred a substantial expense of $400.5 million.
April exhibited prudent financial management practices, with the Federal Government spending $92.8 million on debt servicing. May followed with $221 million allocated for external debt payments. However, June marked a significant escalation, with $543 million utilized for debt servicing, and July surpassed that with a peak expenditure of $642 million, marking the highest figure in 14 months.
The breakdown of direct diaspora remittances from January to July 2023 amounted to $1.9 billion, which plays a vital role in balancing Nigeria’s external financial obligations. In January, direct remittances accounted for $79.2 million, with a consistent inflow. February witnessed a stable $83.76 million, and March showed an increase to $138.6 million. April continued the upward trend with $159.04 million. May demonstrated further strength with $202 million in diaspora remittances. June experienced a substantial boost with $297.4 million, followed by a slight dip in July, with $241 million remitted to Nigeria.
Moreover, it’s worth noting that Nigeria’s debt profile reached N87 trillion, and the government serviced CBN loans with N912.32 billion in just three months, reflecting the nation’s commitment to managing its financial obligations. This interest payment on loans from the CBN in the first quarter of 2023 was 161.47% higher than the amount paid during the same quarter the previous year, as revealed in the 2023 Budget Implementation report.