FG commercial loans increase 31% to $14.67 billion

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Federal government commercial debt rose 31% from $11.17 billion to $14.67 billion, according to an analysis of data on the actual stock of foreign debt from the Office of Debt Management.

Specifically, the country’s commercial lending increased by $3.5 billion, from $11.17 billion in 2020 to $14.67 billion in 2021.

According to the report, the $11.17 billion recorded in 2020 represented 33.49% of the total outstanding external debt. It consisted of $10.87 billion in Eurobonds and $300 million in Diaspora bonds.

In addition, the $14.67 billion recorded in 2021 represented 38.21% of the total external debt stock. It consisted of $14.37 billion in Eurobonds and $300 million in Diaspora bonds.

the punch had reported that commercial loans obtained by Nigeria through Eurobonds increased from $1.50 billion as of December 31, 2015 to $10.87 billion in 2020, indicating an increase of $9.37 billion. dollars or 625% in five years.

It was also reported in September last year that the country had raised $4 billion through Eurobonds.

“Since Eurobonds were issued as part of the New External Borrowing in the 2021 Budget Law, raising $4 billion through Eurobonds provides a significant amount of funds to finance projects in the law, thus contributing to the implementation of the 2021 finance law,” the DMO said in a press release.

In March this year, Nigeria acquired $1.25 billion in Eurobond debt from the international capital market, making Nigeria the first African country to accede to the ICM in 2022.

It came days after Finance, Budget and National Planning Minister Zainab Ahmed told Reuters there were no plans to enter the Eurobond market in 2022. .

The DMO said the Eurobond proceeds would be used to finance critical investment projects in the budget to close the infrastructure gap and bolster Nigeria’s economic recovery, while the finance minister said that the proceeds of the $4 billion acquired on the Eurobond market the previous year would be used to finance the fuel subsidy.

The PUNCH had also reported that Nigeria had spent $3 billion in four years servicing commercial loans, including Eurobonds and Diaspora bonds, according to an analysis of actual debt servicing data. external debt of the DMO.

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%.

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