New Telegraph

Nigeria Spends Huge In Servicing Foreign Debt

The released data by the Central Bank of Nigeria (CBN) has revealed that the Federal Government spent $894 million to service foreign debt obligations from January to April 2023.

The export and international payment data released over the weekend shows that the Federal Government spent $112.35 million in January 2023, $288.5 million in February, $400.5 million in March, and a significant service of $92.8 million for the month of April.

The data also revealed that the total direct remittances for the first four months of 2023 was $451.61 million.

Further breakdown showed that in January, $79.2 million was recorded, and in February, $83.76 million was recorded, while in March, $138.6 million was recorded and in April. $159.04 million was recorded.

The World Bank also revealed that money sent home by Nigerians who live abroad is projected to hit $20.9 billion in 2022, with analysts citing the ‘Naira-4-dollar’ scheme and talent exodus as major factors behind the expected increase in remittances.

As revealed by the World Bank’s Migration and Development Brief report, remittance to Nigeria grew by an estimated 8.85 per cent in 2022 from $19.2 billion in 2021.

“Nigeria witnessed a sharp recovery in flows during 2021 (13.2 per cent), maintaining the improved momentum of 2021 into the first quarter of 2022,” the report said.

“Moreover, the country is reaping little benefit from the surge in crude oil prices, while the expatriate community faces real income losses in the United States, the United Kingdom and the Euro Area,”

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