Nigeria’s Debt Servicing Increases To N6tn in H1 2024, Up 68.8% – CBN

Abuja, Nigeria – Nigeria’s debt servicing costs surged to N6.04 trillion in the first half of 2024, reflecting a significant 68.8% increase compared to the N3.58 trillion spent in the same period last year, according to the latest report from the Central Bank of Nigeria (CBN). This rise in debt obligations now overshadows personnel costs, which stood at N2.32 trillion during the same period, representing a 17.6% increase from N1.97 trillion in the first half of 2023. The data highlights a growing burden on the Federal Government, with debt servicing consuming about half of total government expenditure, which surged by 29.6% to N12.17 trillion in H1 2024, up from N9.39 trillion in H1 2023. The rapid increase in debt service expenses has been largely attributed to the depreciation of the naira, affecting the cost of repaying foreign debts.

The CBN report also revealed that debt servicing consumed approximately 162% of the Federal Government’s retained revenue in H1 2024, a significant rise from the 128% recorded in H1 2023. Monthly data shows an escalating trend, with debt servicing costs surpassing retained revenue in every month of the first half of 2024. The most significant spike occurred in May, when debt servicing costs surged by 332% year-on-year to N2.26 trillion.

source: Reportafrique.com

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