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CBN: Rising Debt Servicing Cost Can Impede Growth - Politics - Nairaland

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CBN: Rising Debt Servicing Cost Can Impede Growth by Racoon(m): 1:08am On Nov 06, 2020
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

4 Likes 1 Share

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by Racoon(m): 1:21am On Nov 06, 2020
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.

83 Likes 5 Shares

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by Bola146(f): 1:22am On Nov 06, 2020
cry sad Are those fools not aware of this lipsrsealed sad
They are borrowing money almost every month cry

Which way Nigeria Lord cry

26 Likes

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by Racoon(m): 1:24am On Nov 06, 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,”
"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?

28 Likes 1 Share

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by Yankee101: 1:25am On Nov 06, 2020
Tell Buhari

5 Likes

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by kayusely70(m): 2:52am On Nov 06, 2020
A Precarious Situation

3 Likes 1 Share

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by Nobody: 3:43am On Nov 06, 2020
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...

13 Likes 1 Share

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by Mysticwebb: 3:45am On Nov 06, 2020
The cow rearer doesn't know this. Him and his partner in looting, the finance minister are still looking for more loans to steal.

15 Likes

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by chyeexcel: 4:01am On Nov 06, 2020
Pls stop telling us what we already know. Tell your clueless oga and his useless supporters.

18 Likes

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by teamsynergy: 4:34am On Nov 06, 2020
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

23 Likes 1 Share

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by BigSarah(f): 4:35am On Nov 06, 2020
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

15 Likes

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by Luckydubby7(m): 4:35am On Nov 06, 2020
But are CBN not part of the government.

12 Likes

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by wunmi590(m): 4:36am On Nov 06, 2020


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.

22 Likes

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by nickvanilla(m): 4:37am On Nov 06, 2020
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.

11 Likes

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by mekuxiani(m): 4:37am On Nov 06, 2020
Can abi is
This Government na only borrow dem Head

7 Likes

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by Yankee101: 4:38am On Nov 06, 2020
Weak CBN governor

16 Likes

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by ecomalchemist(m): 4:38am On Nov 06, 2020
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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1 Like

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by gambia(m): 4:39am On Nov 06, 2020
Misleading headline - Rising Debt Servicing Cost Can has Impeded Nigeria Growth. Buhari is a total failure, any day, anytime.

23 Likes 1 Share

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by adaragbotemi: 4:41am On Nov 06, 2020
Honestly , this man is the worst CBN governor. What were you looking at, rubber stamp CBN governor

21 Likes 1 Share

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by Psylas2: 4:41am On Nov 06, 2020
Hmm
Re: CBN: Rising Debt Servicing Cost Can Impede Growth by Zetty177x: 4:45am On Nov 06, 2020
Incompetent lots. Resign if u can't revive Nigerian economy. For where, them go tanda for office. From president to VP to Ministers

18 Likes

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by Coldie(m): 4:45am On Nov 06, 2020
Say something then do nothing about it

3 Likes 1 Share

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by seguno2: 4:45am On Nov 06, 2020
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

18 Likes

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by Zetty177x: 4:47am On Nov 06, 2020
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

17 Likes

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by Mindlog: 4:51am On Nov 06, 2020
And the FG continues to borrow recklessly!

7 Likes

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by Zetty177x: 4:51am On Nov 06, 2020
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.

11 Likes

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by ecclize: 4:51am On Nov 06, 2020
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...

7 Likes

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by zeusdgrt(m): 4:55am On Nov 06, 2020
CURSED GOVERNMENT

5 Likes 1 Share

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by Donspicey: 4:56am On Nov 06, 2020
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....

9 Likes

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by seguno2: 4:57am On Nov 06, 2020
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

8 Likes

Re: CBN: Rising Debt Servicing Cost Can Impede Growth by BruncleZuma: 4:58am On Nov 06, 2020
Nah wah

1 Like

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