By Dipo Olowookere
About $483.4 million has been set aside by the Federal Government to service foreign loans used for various critical developmental projects in the country.
In its annual report, the Debt Management Office (DMO) explained that this amount would be used over a 10-year period, between 2017 and 2026.
According to the debt office, the Federal Government will begin repayments from 2018 when the foreign debts begin to mature.
In 2011, Nigeria issued a debut Eurobond with a follow up tranche in 2013 and between February and March, Eurobond worth $1.5 billion due in 2032 was issued.
The DMO said Nigeria’s debut $500 million bond will mature in 2021, while a $1 billion will be due next year.
The agency said “increased debt service payments would be made in 2018, 2021 and 2023 amounting to $1.19 million, $1.58 million and $1.69 million, respectively, when the debut 6.75 percent JAN 2021 $500 million 10-year Eurobond issued in 2011 and the $1 billion dual-tranche Eurobonds – 5.125 percent JUL 2018 $500 million 5-year and 6.375 percent JUL 2023 $500 million 10-year issued in 2013, would be due for redemption.”
The report revealed that Nigeria’s external debt, as at December 31, 2016, accounted $11.4 trillion million and about 83.28 percent of the total external debt, were from concessional and semi-concessional sources and these have relatively long-term maturity
Adedapo Adesanya