The Federal Government spent a sum of N1.02 trillion on domestic and foreign debt service in the first quarter of 2021.
This is according to the debt service payment report for Q1 2021, released by the Debt Management Office (DMO).
The amount represents a 35.7% year-on-year increase, compared to N753.7 billion spent in the corresponding period of 2020.
A cursory look at the data reveals that N612.71 billion was spent on domestic debt service, while N410.1 billion was expended on servicing of external debt.
Recall that Nigeria’s total debt portfolio rose to N33.1 trillion as of March 2021 from N32.9 trillion recorded as of the end of 2020, representing an increase of 0.58%. The debt expense for the period already represents 30.7% of the total N3.32 trillion budgeted for debt service for the entire year.
Nigeria’s dwindling revenue is still a major factor militating against the expected development of the economy. The situation has continually led the federal government to borrow to funds its fiscal budget.
