By Modupe Gbadeyanka
The Debt Management Office (DMO) has projected that Federal Government will have to spend $11.62 billion to service foreign debt from 2017 to 2026.
According to the debt office, the amount includes some principals that will fall due for redemption as well as interests that would have accumulated and redeemed on an annual basis.
This year, the country will pay $144.4 million in principal redemption and $524.43 million in interest payment.
“Increased debt service payments would be made in 2018, 2021 and 2023, amounting to $1.19 billion; $1.58 billion; and $1.69 billion, 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 July 2018 $500 million five-year and July 2023 $500 million 10-year issued in 2013 would be due for redemption,” the DMO said.
Specifically, in 2018, Nigeria will part with $1.19 billion, including a principal redemption of $716.09 million and interest payment of $475.8 million.
The projection sees Nigeria paying $1.58 billion in 2021, including principal redemption of $1.12 billion and interest payment of $440.59 million.
By 2023, the Africa’s largest economy will have to part with $1.69 billion.
In 2019, the principal to be redeemed will amount to $290.3 million, while the interest to be paid will add up to $490.8 million.
The next year, which is 2020, Nigeria will pay a total of $983.01 million, while in 2022, the sum of $1.18 billion would be paid.
For 2024, 2025 and 2026, the country is projected to pay total of $1.18 billion, $1.18 billion and $1.17 billion, respectively on existing loans.
Dipo Olowookere 
Adedapo Adesanya