How FG Spent $14.37bn to Service World Bank, Other Debts in 8 Years Kayode Tokede Amid fears that debt services and payments is constituting a major threat to Nigeria’s economy, it has emerged that the federal gover
Amid fears that debt services and payments is constituting a major threat to Nigeria’s economy, it has emerged that the federal government spent a whooping $14.37billion in eight years under President Muhmmadu Buhari administration to settle International Monetary Fund , among other foreign debt obligations.
The 2022 month-on-month breakdown showed that the CBN in January spent $101.3 million to service debts; it increased by 219.71 per cent to $213.3 million in February; and increased further to $345.36 million in March. However, between November and December of 2022, the CBN revealed that $225.4million and $45.64million was spent in debt services and payments respectively.
The data further revealed the CBN withdraw $1.34 billion in 2019 for debt servicing and payment and $1.47billion in 2018. The Director-General of the Debt Management Office , Ms Patience Oniha recently in Lagos argued that debt service to revenue was extremely high, an indication that urgent steps needed to be taken to boost nation’s revenue and enhance public debt sustainability.
Speaking at the last Monetary Policy Meeting , the governor of CBN, Mr. Godwin Emefiele in his personal statement said, the domestic shocks originate from the persisting insecurity inhibiting economic agents; rising cost of debt and debt servicing; deteriorating fiscal balances; increased spending as the 2023 general elections approach; and continued uptrend in inflationary pressure.
“The opportunity costs of high debt service for the economy and citizens are very high as the economy is denied desired funding for critical social and economic infrastructure projects which are needed to build a globally competitive economy and advance the welfare of citizens. There is also the crowding effect of the private sector in the domestic credit market. The government plans to borrow N7 trillion from domestic financial markets in 2023 to fund its fiscal deficit.
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