Nigeria’s external debt serving has hit a new height in half-year 2019 as the latest figure obtained from the Central Bank of Nigeria(CBN) shows that international payment in the form of debt servicing between January and June 2019 was estimated at N263.7 billion or $859 million.
According to the CBN data, Nigeria’s debt service rose by 100% when compared with the amount paid in half-year 2018. Basically, in half-year 2018, international payment made in the form of debt servicing was estimated at N131.3 billion or $427.6 million, while it rose to N263.7 billion or $859 million in half-year 2019.
While Nigeria paid the sum of N610.2 billion to service domestic debt in the first quarter of 2019, servicing external debt gulped N109.6 billion. Meanwhile, external debt service is signalling a big rise.
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A look into the CBN data moreover revealed that within the first 6-months of 2019, Nigeria had paid an average of $101 million or N31.04 billion external debt service on a monthly basis. The highest external debt servicing during the period under review was recorded in February, with N193.4 billion, while the least was paid in June (N18.15 billion). External debts service in 2017 was N142 billion, while by half-year 2019, external debt service had already doubled.
The rising cost of debt servicing has become worrisome as there are growing concerns that Nigeria’s total debt service may hit N1 trillion by the end of 2019.
Samson Oyedeyi
