The Debt Management Office (DMO) has revealed that the Federal Government of Nigeria disbursed approximately N1.79 trillion to service its domestic debt between July and September 2023, according to the Domestic Debt Service Report for the third quarter.
The breakdown indicates a total debt service payment of N268.10 billion in July, N696.52 billion in August, and N827.84 billion in September.
The payments covered interest on Nigeria Treasury Bills (NTBs), Federal Government of Nigeria (FGN) bonds, treasury bonds, and FGN savings bonds.
The total domestic debt service for Q3 2023 witnessed a substantial 107.16% increase compared to the same period in 2022, reflecting the financial strain faced by the government.
In July, interest payments on NTBs amounted to N27.84 billion, FGN bonds to N240.08 billion, and FGN Savings bonds to N178.51 billion.
In August, the debt service payment surged to N696.52 billion, with NTBs interest at N34.83 billion, FGN bonds at N661.42 billion, and FGN Savings bonds at N262.56 billion.
For September, the federal government paid N827.84 billion, which included N51.99 billion on NTBs, N739.11 billion on FGN bonds interest, and N8.3 billion as rentals for FGN Sukuk bonds.
The DMO highlighted that the interest payment on FGN bonds for September comprises securitized Ways and Means for September 2023, pending verification, and noted that all matured FGN securities were refinanced except for Treasury Bonds and Promissory Notes with Sinking Fund provisions.
The total domestic debt service expenditure for the first nine months of 2023 reached N4.13 trillion.