Servicing of debts acquired through instruments issued by the Federal Government in the Nigeria capital market totaled N2.18tn as of October 30, an analysis of data by our correspondent has shown.
Data from listed debt instruments on the FMDQ Exchange showed that repayments by FG on bonds, promissory notes, Sukuk, savings and green bonds altogether amounted to N2.18tn. FG bond payments are structured with coupons paid semi-annually and are used to fund specific infrastructure projects.
The Debt Management Office of Nigeria had disclosed in its Actual Domestic Debt Service reports for January-March and April-June that the Federal Government’s total domestic debt servicing gulped N546.25bn and N307.87bn, respectively. This meant the FG spent N854.12bn servicing capital market debts in the first half of the year.
The Federal Government completed the payment of its NGFG132021S0 July 2016 N561.05bn with 14.5 per cent coupon as it paid a N20.3bn tranche in February and another N20.3bn in July, totaling N601.73bn.
The Federal Government serviced its NGFG9B2022S1 Jan 2022 N605.31bn bond with 16.39 per cent coupon as it paid N99.21bn in two tranches of January and June payments. The Federal Government serviced another 12.75 per cent coupon April 2023 N735.96bn bond with payment of N93.83bn in two tranches, April and October.
