Nigeria raises borrowing limit to 40% of GDP

1 min


0
Nigeria raises borrowing limit to 40% of GDP



The Nigerian government has raised its borrowing limit as a proportion of gross domestic product to 40 per cent, from 25 per cent, the Debt Management Office (DMO) has said in a document.
The DMO said the Federal Executive Council (FEC) at its meeting on February 10 approved the new Medium-Term Debt Management Strategy for Nigeria, for the period 2020-2023.
The DMO said it will target a 10-year average tenor of obligations in its portfolio, mainly from the domestic markets, with long-term securities making up at least 70% of the stock.
The new strategy will also ensure that government debt is sustainable, the DMO said.
“Nigeria has had two (2) Medium Term Debt Management Strategies (2012-2015 and 2016-2019), prior to the current Strategy,” the DMO said in the statement Wednesday.
“The new Strategy had to be re-worked to reflect the global and local economic impact of the COVID-19 Pandemic and incorporates data from the revised 2020 Appropriation Act and the Medium-Term Expenditure Framework 2021-2023. Thus, the new MTDS adequately reflects the current economic realities and the projected trends.”
The IMF in its latest report said Nigeria’s public debt is projected to increase to 34% of GDP in 2020 from 29% in 2019, and will rise to about 36.4% in the medium term.
Interest payments as a proportion of revenues, estimated at 92.6% in 2020, are projected to decline to 60.8% in 2021. The figure would rise to 94.1% of revenue by 2025, the lender said.
Analysts have said that Nigeria needs to effectively manage its debt-service costs, grow revenue and cut down on waste.
“The implementation of the Medium-Term Debt Management Strategies over the years, has helped in managing the structure of the growing public debt, and ensured debt sustainability, as well as effectiveness in public debt management,” the DMO said Wednesday.
“With the approval of the Federal Executive Council of the MTDS, 2020-2023, the Strategy will be implemented to support economic development while ensuring that the Public Debt is sustainable.”

Support ‘ journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to , you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

TEXT AD: To advertise here . Call Willie +2347088095401…



Source link


What's Your Reaction?

hate hate
2
hate
confused confused
6
confused
fail fail
4
fail
fun fun
4
fun
geeky geeky
3
geeky
love love
1
love
lol lol
2
lol
omg omg
6
omg
win win
4
win
guest
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x
Choose A Format
Story
Formatted Text with Embeds and Visuals
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Image
Photo or GIF
Gif
GIF format