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Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt - Politics - Nairaland

Nairaland Forum / Nairaland / General / Politics / Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt (14763 Views)

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Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by nwakibie3(m): 4:45pm On Aug 29, 2019
Two days after Nigeria’s Minister of Finance, Zainab Ahmed, faulted financial experts, stating that Nigeria’s N24.9 trillion debt was not a problem, members of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) have countered her claim.

The members of the MPC raised a concern about the debt level of the states and the Federal Government which they said was worrisome when compared to other countries that the Minister of Finance used to defend the current debt problem.

Nairametrics reported that Ahmed decried the insensitivity of experts concerning the debt situation of the country at a meeting with the management staff of the Ministry of Finance and Budget & National Planning on Monday. She said that despite the misgivings amongst experts over the rising debt profile of Nigeria, what the country faces now is a revenue problem rather than debt challenge.

MPC says Nigeria’s debt is a Problem: Contrary to the minister’s claim, one of the members of CBN’s MPC, Dr Robert Asogwa, said the debt would affect the growth prospects of Nigeria when added to the other risks of the financial sector.

“The rising public debt levels in Nigeria when added to a variety of other financial sector specific risks seem to dampen the prospects of growth in the near term.”

Another member, Mike Obadan said, “The Federal Government debt poses a serious burden with nearly 30% of the budget devoted to debt servicing. Although the debt-GDP ratio is relatively low, the debt – revenue ratio is very high. And it must be stressed that GDP is not used to service debt; rather is revenue in the case of domestic debt or export earnings in the case of external debt.

“Therefore, caution must be exercised on further borrowing while domestic revenue mobilisation efforts are stepped up. The state governments also need to exercise caution in borrowing from commercial banks.”

According to Asogwa, external debt component increased from $18.9 billion in December 2017 to $25.2 billion in December 2018 and rose to $25.6 billion in March 2019. He stated that the total public debt rose from $79.4 billion at the end of December 2018 to $81.2 billion at end of March 2019.

CBN’s MPC counters Minister’s comparison: The Minister had stated that Nigeria’s debt is still very much within a reasonable fiscal limit and if placed side by side with comparative countries, the country is least in terms of borrowing.

This statement didn’t go down well with Asogwa. He faulted Ahmed’s comparison, stating that despite the likes of Brazil, India and China having higher debt-to-GDP ratios than Nigeria, their economies are several times larger than Nigeria.

“Even though such countries as Brazil, India and China have higher debt-to-GDP ratios as compared to Nigeria, these economies are also several times larger than Nigeria. Moreover, the increasing appetite for internationally private-held debt and a persistent hunt for Eurobonds is worrying.

“Besides the associated high cost of borrowing, the huge debt levels crowd out other development spending, given the portions of government revenue allocated annually to service the debt. A coordinated domestic revenue expansion with simultaneous fiscal prudence will be key to addressing the current weak fiscal position of the economy.”

States are playing with fire: In his statement regarding the debt level of the State Governments, Obadan said the purpose of States requesting for financial support is often misguided. According to him, States deploy short-term credits to finance long-term projects, and this is injurious to the states and worsens their debt problem.

Apart from their misplaced investment of bank credits, Obadan said States depend too much on bank loans more than other tiers of government, accounting for 74% of bank credit to the governments.

“And apparently short-term credits are being used by the state governments to finance consumption or long-term projects.

“This compound their financial woes as deposit money banks obtain direct debits from their Federation Account Allocations. There is a need to ascertain the deployment of bank loans by state governments while they should mobilise more Internally Generated Revenue to finance development.”

Also, the Deputy Governor, Economic Policy Directorate, CBN, Dr Okwu Nnanna, said the public sector debt and debt service challenges might become worse as the fiscal conditions remain disappointing.

https://nairametrics.com/2019/08/29/cbn-monetary-policy-committee-and-minister-of-finance-clash-over-nigerias-debt/

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Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by Racoon(m): 5:12pm On Aug 29, 2019
How can the UN, IMF, World bank and other relevant global all be wrong on the deplorable level of Nigeria's accumulated debts? How can the major chunk of our annual budget be used to service debts?

This is how the APC-led govt love to thrive in self-inflicted delusion.How can a govt not believe it own fiscal monitoring body but choose to discountanance warning signs of mortgaging itself into financial indebtedness?

39 Likes 5 Shares

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by Dreal1247: 5:17pm On Aug 29, 2019
This made me to remember what happened to me as an ignorant child. I received a snake bite. I never knew the danger of the snake bite. It was only when someone told my mum in the eve of that day that I was quickly treated. I sense some ignorant people are in charge of important areas of this country. If a critical step is not taken by the right set of people, it will surely spell doom for the nation.

21 Likes 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by FarahAideed: 5:27pm On Aug 29, 2019
In just 4 years Buhari has borrowed more than any other govt in our history and has the absolutely zero to show for the borrowing , he has not built a single road , he has not built a single power plant , he has not purchased a single equipment for the police or military ..The next govt has huge investigation to do to unravel where Buhari has been spending all these monies because nobody can see it

62 Likes 7 Shares

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by PureGoldh(m): 6:17pm On Aug 29, 2019
Wait Oooo.

Do other countries even owe us?

14 Likes 2 Shares

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by Sunnyboom: 6:42pm On Aug 29, 2019
We all know this is a lie but keep fooling yourself. Buhari is yet to borrow additional fund since the election, Nigeria debt profile was over flogged before n after the presidential election with overwhelming evidence that PDP already ruined Nigeria debt n credit profile. Ebele later buries only for Buhari to manage what was left but your life riddled with lies must sha exhibit it foolishness.

Continue !


FarahAideed:
In just 4 years Buhari has borrowed more than any other govt in our history and has the absolutely zero to show for the borrowing , he has not built a single road , he has not built a single power plant , he has not purchased a single equipment for the police or military ..The next govt has huge investigation to do to unravel where Buhari has been spending all these monies because nobody can see it

6 Likes 2 Shares

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by Citytrend: 7:35pm On Aug 29, 2019
Only the dead will see nothing wrong in $24 trillion debt
Anyway, i will Build a Professional Logo for your Product or Company For 1k. Offer valid today only. See my info below to Chat me up on WhatsApp

4 Likes 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by helinues: 7:35pm On Aug 29, 2019
And Dem no fit fight physically.


Mind you there misunderstanding is not about the masses

2 Likes 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by datola: 7:35pm On Aug 29, 2019
Na wa o!

1 Like 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by Nobody: 7:36pm On Aug 29, 2019
Who would take that aboki woman serious when she is only privileged to be there courtesy of her aboki dullard of a president.

11 Likes 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by banio: 7:36pm On Aug 29, 2019
Thieves fighting over the national treasury.

2 Likes 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by Kendumazy(m): 7:36pm On Aug 29, 2019
Nigeria debt isn't a problem so that they can keep borrowing yet no significant infrastructural or technological developments in the country.

Quality UK 1st, 2nd and 3rd grade men's shirts available for sale. Check link below for more details.

6 Likes 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by Lanre4uonly(m): 7:36pm On Aug 29, 2019
Ok. Fingers crossed.

1 Like 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by sophilala: 7:37pm On Aug 29, 2019
They will have to wait for Buhary to come and help them resolve the issue with his profound wisdom and intelligence.

3 Likes 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by seborrhic: 7:37pm On Aug 29, 2019
The last finance minister we had was Okonjo Iweala.
The others after her have been scrap,best suited for tellers in banks.

22 Likes 2 Shares

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by israelmao(m): 7:38pm On Aug 29, 2019
One is monetary and the other is fiscal.I sense some undertones in Zainab's voice because she is there to serve and protect the interest of a particular governor.

5 Likes 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by Blue3k(m): 7:38pm On Aug 29, 2019
“Besides the associated high cost of borrowing, the huge debt levels crowd out other development spending, given the portions of government revenue allocated annually to service the debt. A coordinated domestic revenue expansion with simultaneous fiscal prudence will be key to addressing the current weak fiscal position of the economy.”

The issue isnt debt to gdp. It tax to debt or tax to gdp. The ststes and federal government collect next to nothing living off a oil rents. They would still need to be responsible obviously.

4 Likes 2 Shares

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by ednut1(m): 7:39pm On Aug 29, 2019
The most useless finance minister

4 Likes 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by goshen26: 7:39pm On Aug 29, 2019
They should disagree to agree...

In another development!!!

I love this bashing in the picture below grin grin grin

5 Likes 2 Shares

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by fergie001: 7:40pm On Aug 29, 2019
PureGoldh:
Wait Oooo.

Do other countries even owe us?

3 Likes 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by lilytender: 7:40pm On Aug 29, 2019
FarahAideed:
In just 4 years Buhari has borrowed more than any other govt in our history and has the absolutely zero to show for the borrowing , he has not built a single road , he has not built a single power plant , he has not purchased a single equipment for the police or military ..The next govt has huge investigation to do to unravel where Buhari has been spending all these monies because nobody can see it

Your puff-puff cheeked world bank house-girl was already borrowing even when oil price was relatively high.

4 Likes 2 Shares

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by Livefreeordieha(m): 7:40pm On Aug 29, 2019
nwakibie3:
Two days after Nigeria’s Minister of Finance, Zainab Ahmed, faulted financial experts, stating that Nigeria’s N24.9 trillion debt was not a problem, members of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) have countered her claim.

The members of the MPC raised a concern about the debt level of the states and the Federal Government which they said was worrisome when compared to other countries that the Minister of Finance used to defend the current debt problem.

Nairametrics reported that Ahmed decried the insensitivity of experts concerning the debt situation of the country at a meeting with the management staff of the Ministry of Finance and Budget & National Planning on Monday. She said that despite the misgivings amongst experts over the rising debt profile of Nigeria, what the country faces now is a revenue problem rather than debt challenge.

MPC says Nigeria’s debt is a Problem: Contrary to the minister’s claim, one of the members of CBN’s MPC, Dr Robert Asogwa, said the debt would affect the growth prospects of Nigeria when added to the other risks of the financial sector.

“The rising public debt levels in Nigeria when added to a variety of other financial sector specific risks seem to dampen the prospects of growth in the near term.”

Another member, Mike Obadan said, “The Federal Government debt poses a serious burden with nearly 30% of the budget devoted to debt servicing. Although the debt-GDP ratio is relatively low, the debt – revenue ratio is very high. And it must be stressed that GDP is not used to service debt; rather is revenue in the case of domestic debt or export earnings in the case of external debt.

“Therefore, caution must be exercised on further borrowing while domestic revenue mobilisation efforts are stepped up. The state governments also need to exercise caution in borrowing from commercial banks.”

According to Asogwa, external debt component increased from $18.9 billion in December 2017 to $25.2 billion in December 2018 and rose to $25.6 billion in March 2019. He stated that the total public debt rose from $79.4 billion at the end of December 2018 to $81.2 billion at end of March 2019.

CBN’s MPC counters Minister’s comparison: The Minister had stated that Nigeria’s debt is still very much within a reasonable fiscal limit and if placed side by side with comparative countries, the country is least in terms of borrowing.

This statement didn’t go down well with Asogwa. He faulted Ahmed’s comparison, stating that despite the likes of Brazil, India and China having higher debt-to-GDP ratios than Nigeria, their economies are several times larger than Nigeria.

“Even though such countries as Brazil, India and China have higher debt-to-GDP ratios as compared to Nigeria, these economies are also several times larger than Nigeria. Moreover, the increasing appetite for internationally private-held debt and a persistent hunt for Eurobonds is worrying.

“Besides the associated high cost of borrowing, the huge debt levels crowd out other development spending, given the portions of government revenue allocated annually to service the debt. A coordinated domestic revenue expansion with simultaneous fiscal prudence will be key to addressing the current weak fiscal position of the economy.”

States are playing with fire: In his statement regarding the debt level of the State Governments, Obadan said the purpose of States requesting for financial support is often misguided. According to him, States deploy short-term credits to finance long-term projects, and this is injurious to the states and worsens their debt problem.

Apart from their misplaced investment of bank credits, Obadan said States depend too much on bank loans more than other tiers of government, accounting for 74% of bank credit to the governments.

“And apparently short-term credits are being used by the state governments to finance consumption or long-term projects.

“This compound their financial woes as deposit money banks obtain direct debits from their Federation Account Allocations. There is a need to ascertain the deployment of bank loans by state governments while they should mobilise more Internally Generated Revenue to finance development.”

Also, the Deputy Governor, Economic Policy Directorate, CBN, Dr Okwu Nnanna, said the public sector debt and debt service challenges might become worse as the fiscal conditions remain disappointing.

https://nairametrics.com/2019/08/29/cbn-monetary-policy-committee-and-minister-of-finance-clash-over-nigerias-debt/
moral of the story minister is APC and the others are appointees who care only about progress...

2 Likes 2 Shares

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by crownwealth: 7:40pm On Aug 29, 2019
Fight to death as you like

2 Likes 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by MissDriDri: 7:41pm On Aug 29, 2019
Citytrend:
Only the dead will see nothing wrong in $24 trillion debt
Anyway, i will Build a Professional Logo for your Product or Company For 1k. Offer valid today only. See my info below to Chat me up on WhatsApp

2 Likes 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by hisexcellency34: 7:42pm On Aug 29, 2019
Clashing everyday

2 Likes 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by TSRC: 7:43pm On Aug 29, 2019
Quota system minister of finance.
How can Nigeria's huge debt not be a problem?

You want to borrow this country to death?

6 Likes 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by Burger01(m): 7:45pm On Aug 29, 2019
Just imagine angry

1 Like 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by Yankee101: 7:45pm On Aug 29, 2019
She's Elrufaiz cousin

Wants to help him get the World Bank loan to steal.

Now that Hunkuyi is in China and Shehu Sani is a blogger. No more Senate blockage

3 Likes 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by JonDon12: 7:46pm On Aug 29, 2019
All this money, Nigeria is borrowing whether APC or PDP, What are they using it for? Not one Refinery built. Civil servants owed salary. No Industries created. Education only marginally improving. What are they using it for? The only money I see in Nigeria is in dezianis account and tinubus bullion vans. Nigerian politicians not only steal from us but then borrow money in our names, steal it and expect us to pay it back.

2 Likes 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by donsufia: 7:47pm On Aug 29, 2019
Let them ask Greece how far about the impact of debt.

3 Likes 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by stampedncheeks: 7:47pm On Aug 29, 2019
helinues:
And Dem no fit fight physically.


Mind you there misunderstanding is not about the masses

2 Likes 1 Share

Re: Zainab Ahmed: CBN Monetary Policy Committee, Minister Of Finance Clash Over Debt by Mackyjay: 7:48pm On Aug 29, 2019

1 Like

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