Between April and June this year, Nigeria spent $298.96 million to service its external obligations, a $704.44 million reduction from what was paid in the first quarter of the year.
This is according to the latest data made available by the Debt Management Office (DMO).
This brings the total debt servicing cost for the country in the first six months of the year to $1.302 billion.
The debt servicing payment for the second quarter of the year is much lower than $1.003 billion which the country paid in the first three months of the year.
According to data by the debt office, payments on commercial debts accounted for 53 per cent while multilateral and bilateral obligations accounted for 35 and 13 per cent of the payments respectively.
The country paid out a total of $157.012 million on Eurobond debts while $38.22 million was paid on bilateral loans and another $103.73 million paid on multilateral obligations.
Of the multilateral payments, the county remitted $75.57 million to the International Development Association (IDA), which is an arm of the World Bank.
Another $16.83 million was also paid to Asian Development Bank (ADB), while on the bilateral side, $24.75 million was paid out to service the country’s obligations with the French Development Agency (AFD). Similarly, the country paid out $12.99 million to German state-owned investment and development bank, KfW Group.
For the commercial loans, a total of $148.57 million was paid to investors with $57.187 million paid on the 7.625% Eurobond 2047, $48.750 million paid on the 6.5% Eurobond 2027 and $42.637 million paid on the 7.625 Eurobond 2025 papers.
In the first quarter of the year, Eurobonds had accounted for 76 per cent of the external debt servicing payment with $763.036 million while multilateral payments culminated to 13 per cent of the total figure at $134.044 million.
Debt service payments to bilateral organisations in the first three months of the year totalled $106.329 million accounting for 11 per cent of the total payment.
President Muhammadu Buhari had in September this year sought the approval of the Senate to obtain a $4 billion and €710 million loan to address critical projects approved by the Federal Executive Council (FEC).
In the letter, the president said the projects listed in the external borrowing plan would be financed through sovereign loans from the World Bank, French Development Agency, EXIM Bank and IFAD in total sum of $4.054 billion and €710 million and grant components of $125 million.