A SaharaReporters’ review of the Central Bank of Nigeria international payments system data has shown the country paid $3.5 billion (N5trillion) for foreign debt servicing between January and September 2024.
The data reviewed shows that debt servicing gulped $560.5 million in January, 2024.
According to exchange rate data, dollar exchanged for N909, this means that the country paid N509.511 billion in January for debt servicing .
In February, external debt servicing gulped $283.3 million, historical data shows that dollar exchanged at an average of N1402 in February.
This would mean that the country paid N397.186 billion for foreign debt servicing.
In March, the country spent $276.1 million on debt servicing, dollar to naira exchange rate stood at N1512 . This would mean that the country spent N417.463 billion on debt servicing.
Also in April, debt servicing cost stood at $215.2 million. Average exchange rate in April stood at N1225.
This would mean that in naira rate, the country paid N263.620 billion for foreign debt servicing.
In May, foreign debt servicing cost $854.365 million. Average exchange rate stood at N1424 in May. The naira conversion of the payment stands at N1.216 trillion.
In June, foreign debt servicing stood at $50.8 million. Average dollar to naira exchange rate stood at N1492. It would mean that the naira conversion stood at N75.793 billion.
In July, the country paid $542.5 million for foreign debt servicing.
The naira exchange rate of the dollar stood at an average rate of N1568 in July.
This means that the country paid N850.6 billion for foreign debt servicing.
In August, the country spent $279.954 million for external debt servicing. Dollar to naira exchange rate stood at an average of N1588 in August.
This would mean that external debt servicing cost N444.566 billion in August, 2024.
As of September 2024, external debt servicing stood at $515.8 million. The dollar to naira average exchange rate stood at N1625, this would mean that the country spent N838.175 billion on debt servicing.
In total, it would mean that in total the country spent N5 trillion on foreign debt servicing between January and September, 2024.
There have been concerns on how Nigeria spends heavily on debt servicing and its impact on development in the country.
Peoplesmind
