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The Federal Government has spent a total of N3.72tn to service local debts in the past three years, statistics available from the Debt Management Office have shown.
According to latest statistics made available by the DMO, the Federal Government spent a total of N1.48tn on actual debt servicing in 2017.
With N1.23tn and N1.02tn spent on domestic debt servicing in 2016 and 2015, respectively, these add to a total of N3.72tn in the last three years.
Among the various instruments that the Federal Government used to borrow from the domestic debt market, the highest interest was paid on the FGN Bonds.
In 2017, for instance, the Federal Government paid N982.66bn on the FGN Bonds. A total of N445.13bn was paid on Nigerian Treasury Bills; N22.99bn was paid on Treasury Bonds; while N25bn of the principal was repaid.
An interest of N442bn was paid on Savings Bonds. The Federal Government has been spending considerable resources in recent times on the servicing of domestic debts, thereby raising questions of the sustainability of the country’s debt burden.
