Data released by the Central Bank of Nigeria (CBN) has revealed that the Federal Government of Nigeria spent $1.17 billion to service its foreign debt in the first half of 2023.
The report reveals that in January 2023, the federal government allocated $112.35 million towards servicing its foreign debts.
This amount increased to $288.5 million in February and further rose to $400.5 million in March. Notably, April witnessed a significant expenditure of $92.8 million.
In May, the government disbursed $221 million, while June recorded the highest servicing cost in 13 months, reaching an astonishing $543 million.Direct Remittances: During the same period, the total direct remittances amounted to $951.99 million.
In January, $79.2 million was remitted, followed by $83.76 million in February. March saw a substantial sum of $138.6 million, and April recorded a remittance of $159.04 million.
As we move into the later months, May witnessed an influx of $202 million, while June saw a significant increase with $297.4 million in direct remittances.
The Minister of Finance and Coordinating Minister for the Economy, Chief Wale Edun has however stated that the FG will refrain from borrowing from local or foreign organizations.
This decision comes as a result of the removal of subsidy on petrol and exchange rate harmonization.
As the country moves forward, it remains crucial for the government to continue prioritizing internal financing and implementing sustainable economic policies to alleviate the burden of foreign debt servicing.
