See how much Nigeria repaid China, the World Bank, others

• The Nigerian authorities serviced debts with astir 13.12 trillion successful 2024, representing a 68% summation from N7.8 trillion successful 2023
• Data from the Debt Management Office (DMO) shows that indebtedness servicing costs successful 2024 exceeded the allocation of N12.3 trillion successful 2024
• The Nigerian authorities earmarked N16 trillion for indebtedness servicing, showing its anticipation for continued debt-related expenses

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.

According to reports, home indebtedness work outgo for the twelvemonth nether reappraisal stood astatine N5.97 trillion, representing a 14.15% summation from N5.23 trillion successful 2023.

The summation is owed to higher involvement rates and rising home borrowing.

Tinubu's authorities raises the barroom successful indebtedness servicing costs successful 2024 Credit: State House.
Source: Getty Images

FG indebtedness servicing outgo increases

Nigeria spent astir $4.66 cardinal connected outer indebtedness servicing, an summation of 167% from N2.57 trillion recorded successful the erstwhile year.

The summation successful indebtedness servicing costs is owed to expanding planetary involvement rates and the naira depreciation, which made dollar loans much expensive.

An investigation of the information shows that home indebtedness continues to relationship for a large portion of Nigeria’s debt-servicing expenses, contempt the summation successful outer indebtedness servicing.

Nigeria’s indebtedness work past twelvemonth accrued by 36.27% to astir N5.97 trillion, comparative to N4.38 trillion successful 2023.

The summation is astir N1.59 trillion, showing the increasing indebtedness work load connected Nigeria.

DMO information shows that astir of the home indebtedness work past twelvemonth was owed to the Federal Government Bond, which accounted for N4.69 trillion, a 78.59% increase.

That represents an summation from N3.66 trillion, showing a emergence of N1.03 trillion oregon 28.2%.

FG's home indebtedness rises

FGN Bonds' dominance successful the home indebtedness work illustration shows the government’s reliance connected semipermanent indebtedness financing for its budgets.

This marks an summation from N3.66 tn successful 2023, indicating a emergence of astir N1.03 tn oregon 28.2 per cent.

Nigeria’s Treasury bills contributed astir N747.15 cardinal to the full home indebtedness work past year, comparative to N326.12 cardinal successful 2023.

The fig represents a 129% increase, showing a emergence successful the involvement load from short-term borrowing instruments.

Top sources of home debt

Other contributions to home indebtedness services see the Federal Government Savings Bonds connected FGN Sukuk Bonds, which saw involvement payments of N6.38 cardinal and rentals of N158.43 billion.

Punch reports that FGN Green Bonds recorded a indebtedness work of N2.18 billion, the aforesaid arsenic successful 2024.

Promissory enactment main repayments roseate to N265.86 cardinal successful 2024, comparative to N277.16 cardinal successful 2023.

The magnitude represents a flimsy diminution of 4.08%, showing a simplification successful promissory notes.

External indebtedness servicing grows

Further findings showed that Nigeria’s outer dent work for past twelvemonth accrued to $4.66 trillion comparative to $3.50 cardinal successful 2023.

The magnitude represents a yearly summation of astir 33% of $1.16 billion.

DMO information shows that astir of the outer indebtedness work for past twelvemonth was paid to commercialized creditors with $1.47 billion.

They see Eurobonds astatine $1.15 cardinal and multilateral creditors astatine $2.62 billion.

Top sources of FG’s outer borrowing

The largest portion successful the class was paid to the International Monetary Fund, which got $1.63 billion, representing astir 62.2% of the full multilateral indebtedness service.

World Bank’s International Development Association (IDB) received $663.23 cardinal successful indebtedness servicing.

Others see the African Development Bank and the International Bank for Reconstruction of the World Bank.

Bilateral creditors were the third-largest group, receiving $570.67 cardinal successful indebtedness service.

The Exim Bank of China received the astir money successful the Bilateral creditors group, with $362.60 million, 63.5% of the indebtedness payments.

Others see Agence Française de Développement with $66.45 cardinal and Germany astatine $35.91 million.

World Bank clarifies CBN funding

Legit.ng reported that the World Bank clarified that the $10.50 cardinal backing for the Central Bank of Nigeria was not a indebtedness but a grant.

A root astatine the World Bank reportedly disclosed that the magnitude came nether the Finance for Development Multi-Donor Trust Fund arsenic portion of a concern betwixt the planetary lender and the CBN.

Nigeria sought to borrow $10.50 cardinal to boost CBN’s method capableness and modernise the country’s home outgo infrastructure.

World Bank’s $10.5om to CBN is simply a grant

The World Bank’s website had described the apex slope arsenic a borrower for the project.

However, owed to the statement, further findings revealed that the magnitude was meant arsenic a assistance to enactment the project.

FG borrows much funds nether President Tinubu to money the budget. Credit: State House
Source: Twitter

Punch reports that the World Bank often lends to Nigeria nether the IDA and IBRD.

Nigeria receives $1.13 cardinal indebtedness from World Bank

Legit.ng earlier reported that the World Bank reports that Nigeria's indebtedness request of $1.13 cardinal has been granted.

Details connected the bank's website connected Wednesday amusement that 3 abstracted financing requests for projects aimed astatine improving nutrition, household and assemblage resilience, and prime acquisition were accepted successful March.

According to the World Bank, connected March 31, $552 cardinal for the "HOPE for Quality Basic Education for All program" and $80 cardinal for the "Accelerating Nutrition Results successful Nigeria 2.0" task were authorized.

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Source: Legit.ng