The Federal Government incurred a debt service bill of N606.87 billion on domestic obligations alone in just one quarter. Five major domestic debt instruments of the Federal Government cumulatively gulped N606.87 billion as service bill in the months of July, August and September 2019. While the huge debt service subsists, in 2019, government consistently recorded revenue shortfalls on monthly basis, with November 2019 figure being estimated at about N218 billion. The least of the domestic debt service bill component came from the newly introduced FGN Savings Bond at N355.63 million, given its low debt accumulation and interest rate charges, while the Sukuk took N8.3 billion. In other words, the country has booked another round of borrowing, with increased debt service costs as consequences.

Source: The Guardian February 03, 2020 04:52 UTC