The Federal Government spent $112.35 million in January 2023 repaying external debt. According to information from the Weekly International Payments report published by the Central Bank of Nigeria, the amount spent in January was $146.17 million more than the $45.64 million spent in December 2022.
This happened when the Federal Government worked to increase its revenue base despite obstacles.
From the Federation Account allocations allocated to state governments in 2022, the deductions were made.
The PUNCH noted that Lagos was the state hardest hit by the deductions, with around N23.61 billion set aside in 2022 for external debt servicing.
The Federal Government expects to spend 82% of its revenue on interest payments in 2023, according to latest data from the International Monetary Fund. As stated by the IMF, external debt (including that of the private sector) will rise to $121.6bn, with external reserves climbing to $37.5bn.