The cost of servicing Nigeria’s public debt has increased by 88.8 percent in the third quarter of last year (Q3’20). The debt rose from N425.7 billion in Q2’20 to N803.69 billion. The amount was used to service the country’s debt stock of N32.22 trillion during the review period.

According to the National Bureau of Statistics, the figures in the ‘Nigeria and Foreign Debt Report Q3’20’  showed that the debt service fee comprises actual external debt service fee of N199.5 billion and actual domestic debt service fee of N604.19 billion.

The report also shows that the external debt service fee, used to service the country’s foreign debt of N12.19 trillion during the quarter, rose by 77 percent to N199.5 billion in the third quarter from N112.9 billion in Q2’20. 

While the country’s domestic debt service fee rose by 93 percent to N604.19 billion in the third quarter from N312.8 billion in the second quarter. This was used to service the country’s domestic debt of N20.04 trillion during the period.

The report stated: “Nigerian States and Federal Debt Stock data as of 30th September 2020 reflected that the country’s total public debt portfolio stood at N32.22 trillion.

“Nigeria’s total public debt showed that N12.19 trillion or 37.82 percent of the debt was external while N20.04 trillion or 62.18 percent of the debt was domestic.”

The domestic debt service fees of N604.19 billion comprises interest from Nigerian Treasury Bills (NTBs) amounting N97.6 billion, federal government bonds (N488.5 billion), Treasury Bonds (N9.37 billion), Federal Government of Nigeria (FGN) Savings Bond (N365.6 million) and FGN Sukkuk (N8.2 billion).