The amount spent by Nigeria on servicing Eurobonds and Diaspora bonds has risen by 85.67 per cent between the first and the second quarter of 2022.
An analysis of data on actual external debt service payments from the Debt Management Office showed that Nigeria spent a total of $246.16m on servicing its foreign bonds in the first quarter of 2022. By the second quarter of the same year, the total debt service cost on these loans rose to $457.01m.
Hence, the debt service has risen by 86 per cent between the two periods.
A Eurobond is “a debt instrument that’s denominated in a currency other than the home currency of the country or market in which it is issued,” according to Investopedia, Similarly, a diaspora bond is “a government debt security with investors drawn from the country’s nationals living abroad, their descendants, or those with another connection to the nation,” said the Migration Policy Institute as cited by the Brookings Institute.
A breakdown for Q1 2022 showed that the country paid the entire $246.16m on servicing Eurobonds.
