The Central Bank of Nigeria has expressed concern over the rising cost of debt service being incurred by the Federal Government.

The CBN, in its half-year 2020 economic report, said the trajectory of Federal Government’s debt further constrained fiscal policy during the period, as interest payment obligations amounted to N1.15tn in the first half of 2020.

“This suggested that, despite the subsisting revenue challenge, which was exacerbated by COVID-19, the larger proportion of FGN revenue was devoted to debt service,” it said.It said at 19.2 per cent, the debt-to-GDP ratio indicated a solvency position of the government.

“However, the rising cost of debt service underscores a precarious liquidity position that could impair the government’s fiscal space, as well as its growth objectives,” the central bank said.

It said total public debt outstanding was driven by rising fiscal deficits and associated borrowings, induced by low revenue inflow in the face of relatively high expenditure.

It noted that total public debt, constituting both the federal and state governments’ external and domestic debt, in the first half of 2020, stood at N31.01tn or 22.3 per cent of GDP, a sizeable increase of 20.6 per cent over its level at the end of June 2019.

The CBN said the increase was attributed to the receipt of budget support loan from the International Monetary Fund and new domestic borrowing to finance the revised 2020 Appropriation Act.

According to the report, the Federal Government owed 81.5 per cent of the total outstanding debt, while state governments accounted for the balance of 18.5 per cent.

“Regardless, given that the FGN guarantees external borrowing by states in line with section 47 (3) of the Fiscal Responsibility Act, 2007, the latter’s share of external debt (13.5 per cent of total external debt) was a contingent liability to the FGN,” it said.

The CBN said in the first half of 2020, domestic debt comprised 57.6 per cent of the total, while external debt accounted for the balance of 42.4 per cent.

https://www.google.com/amp/s/punchng.com/rising-debt-servicing-cost-can-impede-growth-cbn/%3famp=1

Chronic borrowing or debt pillage is a sign of economic cluelessness.Servicing these debts in itself is not a sound economic policy because debt servicing is not debt payment

Cut costs of governance(salary of presidency/NASS, reduce foreign travels until really needful, disposed off the excess presidential jets, scrapping of redundant agencies esp.NNPC & merging of others,etc), no plea bargain for indicted corrupt persons, prospecting for alternate energy sources, cutting off wasteful oil exploration,

However, Nigeria's case @ present is a government that is just senselessly obsessed with endless borrowings. Perhaps until Nigeria is offered for sale by our creditors on e-bay, Amazon, OLX before una go understand what is @ stake.

Are those fools not aware of this
They are borrowing money almost every month

Which way Nigeria Lord

“This suggested that, despite the subsisting revenue challenge, which was exacerbated by COVID-19, the larger proportion of FGN revenue was devoted to debt service,” it said.It said at 19.2 per cent, the debt-to-GDP ratio indicated a solvency position of the government.

“However, the rising cost of debt service underscores a precarious liquidity position that could impair the government’s fiscal space, as well as its growth objectives,”

"Nigeria must continue to borrow"- Usman Finance minister. https://www.google.com/amp/s/punchng.com/why-nigeria-cant-stop-borrowing-ahmed-finance-minister/%3famp=1

When it's said that this government is a disaster, zombies call people wailers.Enjoy! Generations will be locked up paying this debts.Guess recession is still a byword?

Tell Buhari

A Precarious Situation

Nigeria cannot the survive the tribulation hit come 2021 with this fainted leadership mindset.. Brace yourself up! Save money and store foods at home.


-Do not say you were not warned, because governments are anti-people...

The cow rearer doesn't know this. Him and his partner in looting, the finance minister are still looking for more loans to steal.

Pls stop telling us what we already know. Tell your clueless oga and his useless supporters.

Useless people .. keep watching while the govt borrow money recklessly.

The painful thing is , the generation that will pay the debt are not even beneficiaries of the stupid loans

Ok... But Quick question was Nigeria ever growing? 2011-2020 I don’t see any growth.

The worst way to live is Borrowing to eat, borrowing to pay back what you’ve borrowed before.. That’s a terrible situation to be in , Quite sad am sad

But are CBN not part of the government.

You don't need to stylishly be putting it on media, go to the dollard that employed you face to face and let him know.

It is better for him to just sell Nigeria and give us our own share of it and let's find our square root.

Racoon:
Chronic borrowing or debt pillage is a sign of economic cluelessness.Servicing these debts in itself is not a sound economic policy because debt servicing is not debt payment

Cut costs of governance(salary of presidency/NASS, reduce foreign travels until really needful, disposed off the excess presidential jets, scrapping of redundant agencies esp.NNPC & merging of others,etc), no plea bargain for indicted corrupt persons, prospecting for alternate energy system, cut off wasteful oil exploration,

However, Nigeria's case @ present is a government that is just senselessly obsessed with endless borrowings. Perhaps until Nigeria is offered for sale by our creditors on e-bay, Amazon, OLX before una go understand what is @ stake.

You've said it all.

Can abi is
This Government na only borrow dem Head

Weak CBN governor

Na wa o

We are living in such precarious times, I'm not sure if by 2023 Nigeria will exist as a country.

Everything is spiralling out control.


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Misleading headline - Rising Debt Servicing Cost Can has Impeded Nigeria Growth. Buhari is a total failure, any day, anytime.

Honestly , this man is the worst CBN governor. What were you looking at, rubber stamp CBN governor

Hmm

Incompetent lots. Resign if u can't revive Nigerian economy. For where, them go tanda for office. From president to VP to Ministers

Say something then do nothing about it

gambia:
Buhari is a total failure.

He was for two years in the 1980s, why did we allow him scam us with his change mantra in 2015, and then rewarded him with promotion to the next level in 2019 despite his incompetence to make the promised change?

Are we not the 200 million mumus that Lagbaja called us?
Are we not the total failures ourselves

wunmi590:


You don't need to stylishly be putting it on media, go to the dollard that enjoyed you face to face and let him know.

It is better for him to just sell Nigeria and give us our own share of it and let's find our square root.

Our share ke? If them sell Nigeria , each Nigerian will still balance the buyers a certain sum . Buhari don owe money wait our unborn children

And the FG continues to borrow recklessly!

seguno2:


He was for two years in the 1980s, why did we allow him scam us with his change mantra in 2015, and then rewarded him with promotion to the next level in 2019 despite his incompetence to make the promised change?

Are we not the 200 million mumus that Lagbaja called us?
Are we not the total failures ourselves

To be candid, Nigeria mumu nor gree do. If Buhari got 0 or very few votes in 2019, there would have been no figures to rig with. But zombies and co rigged election and also voted. When the guy with Tinubu were shouting change up n down, I knew the scammers won't change.

Are u saying this government doesn't know that they are supposed to reduce government expenditure inform of salary and allowance slashing... proper monitoring of government budget to safe it citizens form unnecessary and avoidable hardship... promoting local product is also a way to go...

i wonder if we are being rule by educated elite...

CURSED GOVERNMENT

Borrowing after Borrowing........

Debt after Debt........


Minister of Finance along side the reps and dat motionless malu in Aso rock have finished dis country....


Only God can help dis country......

well to dos dat voted in dis disaster,Enjoy ur next level change.....

3 more years to go....

ecclize:
Are u saying this government doesn't know that they are supposed to reduce government expenditure inform of salary and allowance slashing... proper monitoring of government budget to safe it citizens form unnecessary and avoidable hardship... promoting local product is also a way to go...

i wonder if we are being rule by educated elite...

If we are being ruled by educated elite, why is our country having the highest number of children out of school?
Even the children who are in school, are mostly in substandard private schools that are largely unmonitored by government officials.
So why are you wondering

Nah wah