A steep rise in domestic debt service
​A steep rise in domestic debt service
A statement from the Debt Management Office (DMO) in the local media last week noted that total debt service of N1.36trn (US$6.9bn) amounts to 35% of projected FGN revenues in the 2016 budget proposals. Domestic debt obligations account for 96% of the burden. This deterioration in the ratio (from 26% per the unfulfilled 2015 budget) is another consequence of the crashing oil price, masked to a point by the FGN’s ambitious projections for non-oil revenue generation. Our chart shows the steady increase in domestic debt service payments over four years as well as the occasional dip for the quarters with few, if any principal repayments.
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