Debt Management Office (DMO) has said Nigeria spent N7.8 trillion in 2023 to service its debt obligations, revealing a 121% increase from the previous year.

This is according to data released by the Debt Management Office (DMO).

According to the DMO, the increase is partly due to the devaluation of the local currency, which drove the cost of servicing foreign debt obligations.

The Debt Management Office explained that the debt service cost surpassed the budgeted N6.56 trillion for the year, which includes N3.29 trillion domestic, N1.81 trillion external, N247.7 billion sinking fund, and N1.2 trillion as interest on Ways and Means debt to the CBN.

Meanwhile, Domestic debt service cost increased by 104% to N5.23 trillion, while external debt service surged by 167% to N2.57 trillion.

 Further media reports hinted that  Nigeria is set to increase borrowings in 2024 due to an over N10 trillion budget deficit as the government is in talks with the World Bank to obtain $1 billion loans to address challenges faced by Internally Displaced Persons and their host communities.