According to CBN statistics, the federal government of Nigeria spent $1.17 billion in the first half of 2023 servicing foreign debt. The period's largest spending was in the month of June, which totaled $543 million. The information also reveals that between January and June, direct remittances totaled $951.99 million. In the first half of 2023, the federal government spent $1.17 billion on obligations to service foreign debt. The Central Bank of Nigeria (CBN) has revealed data on exports and international payments.
During the first half of 2023, the Central Bank of Nigeria spent $951.99 million on direct remittances. According to reports, the Nigerian government spent more than 85% of its income on debt repayment in February 2023. Nigeria's president Bola Tinubu has committed to remove the country's excessive reliance on borrowing for government expenditures. He pledged to reduce the added strain of debt payment on the administration of Nigeria's constrained tax resources.
According to CBN statistics, the federal government paid $112.35 million in January 2023 to pay down its foreign debts. In February, the government spent $288.5 million, and in March, it spent $400.5 million. In April, a large $92.8 million expenditure was incurred. Additionally, as of May, $221 million had been spent on meeting these obligations. The month of June, which had an exceptionally high maintenance cost of $543 million, the highest sum in 13 months, was the most striking aspect of this data, though.
Data from the Debt Management Office show that China, the World Bank, the African Development Bank, the Islamic Development Bank, Japan, France, and other institutions are among Nigeria's biggest lenders. Payment for the time period According to the analysis of the statistics, direct remittances totaled $951.99 million for the first half of 2023. The figures show that February's total was $83.76 million while January's total was $79.2 million. In March, a large $138.6 million was totaled, and in April, $159.04 million was moved.
A $202 million influx was recorded in May, while a significant rise of $297.4 million in direct remittances was recorded in June. The federal administration said on Monday, August 29, 2023, that it had no intention of borrowing money from any local or foreign organizations after abolishing the gasoline subsidy and harmonizing exchange rates. Chief Wale Edun, Minister of Finance and Coordinating Minister for the Economy, made this statement on Monday in Abuja at the end of the first Federal Executive Council meeting.
Edun claims that a variety of palliatives have been made available as a result of the increased funds from subsidy withdrawal to decrease the effect over the short, medium, and long term. He reiterated the intention of President Bola Tinubu's administration to extricate the economy from the bind it has found itself in over time. Amid the CBN's depreciation of the currency, Nigeria's debt stock reached N82 trillion. Before the Central Bank of Nigeria (CBN) exchange rate unification, which was announced on Wednesday, June 14, 2023, the public debt of Nigeria increased from N77 trillion to N82 trillion, according to a previous article by Legit. ng.
In accordance with a news announcement from the CBN, all exchange rate windows have been merged into the Importers and Exporters (I&E) window to demonstrate this. The Debt Management Office (DMO) estimated Nigeria's debt portfolio at N448 billion before the naira's floating.
