Nigeria Spends $ 3 Billion Servicing Commercial Loans In Four Years
Nigeria spent $ 3 billion over four years servicing commercial loans, including Eurobonds and Diaspora bonds, according to an analysis of data on actual external debt service payments from the Management Office debt.
The cost of servicing commercial loans increased from $ 91.3 million in 2016 to $ 840.1 million in 2020, an increase of $ 748.8 million or 820.15%.
The country paid $ 91.3 million for servicing commercial loans in 2016, which represented 26 percent of the total cost of servicing the external debt of $ 353.1 million.
In 2017, $ 158.8 million was spent on servicing commercial loans, representing 34.21 percent of the total external debt servicing cost of $ 464 million.
The country serviced its commercial loans to the tune of $ 1.03 billion in 2018, which represented 70.03% of the total cost of servicing the external debt of $ 1.5 billion.
In 2019, the amount spent on servicing commercial loans represented 59.08% ($ 787.8 million) of the total cost of servicing the external debt of $ 1.4 billion.
Last year, $ 840.1 million was spent on servicing commercial loans, representing 54 percent of the total cost of servicing the $ 1.6 billion external debt.
PUNCH recently reported that commercial loans obtained by Nigeria through Eurobonds had increased from $ 1.50 billion as of December 31, 2015 to $ 10.87 billion at the end of the last few years, indicating a increase of $ 9.37 billion or 625% in five years.
It was also reported in September that the country had raised $ 4 billion via Eurobonds.
âSince the Eurobonds were issued under the new external borrowing of the 2021 finance law, the raising of $ 4 billion through Eurobonds provides a significant amount to finance the bills, thus contributing to the implementation of the 2021 finance law, âthe DMO said in a press release.
The federal government plans to return to the Eurobond market for the balance of its external borrowing of $ 6.1 billion. This month, the DMO hosted a meeting of global investors and roadshow in London.
The International Monetary Fund, in a recent report, said Nigeria, Egypt and Ghana had the highest weight in the emerging bond market index.
“In terms of materiality, Egypt, Nigeria and Ghana have the highest weights at 2.6, 1.5 and 1.5 percent respectively of EMBIG Global Diversified,” he said. declared.
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