Nigeria’s debt level fast approaching pre-2005 era - CBN warns FG
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Nigeria’s debt level fast approaching pre-2005 era - CBN warns FG

- The federal government has been warned against external borrowing by the Central Bank of Nigeria's monetary policy committee

- The governor of CBN in a meeting said, the committee noted the increase in debt level

- According to the committee, the increase in debt level could fast be approaching the pre-2005 Paris Club level

The Central Bank of Nigeria has caution the Nigerian government against continuous external borrowing.

The Cable reports that CBN warned that the increase in Nigeria's debt is fast approaching the pre-2015 Paris Club level.

Speaking at the end of the CBN's bi-monthly meeting on Tuesday, January 22, the governor of the apex bank, Godwin Emefiele, said the monetary policy committee of the CBN was established with a view to help reduce pressure on government expenditure.

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Emefiele said: “On external borrowing, the committee noted the increase in debt level advising for caution, noting that it could fast be approaching the pre-2005 Paris Club level.”

“The committee also noted the attempts by the government to broaden the base of the Value Added Tax and urge the authorities to expedite action in that effect, arguing that increased tax collection will reduce pressure on government expenditure and create fiscal buffers to improve macroeconomic management,” Emefiele said.

Legit.ng gathered the monetary policy rate was retained at 14% as the Cash Reserves Ratio was maintained at 22.5%

Liquidity ratio was left at 30% and the Asymmetric Window was left at +200 and -500 basis points around the MPR.

Meanwhile, Legit.ng previously reported that the CBN had vowed to revoke the operating licences of not less than 182 micro finance institutions across the federation.

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The apex ban in a list released on Wednesday, September 26, said about 154 microfinance banks, including six mortgage banks, and other finance companies will be affected.

Also, 62 of the microfinance banks had already closed down, about 74 of them are insolvent while 12 are terminally distressed. Similarly, six of the financial firms are voluntary liquidated.

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Source: Legit Newspaper

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