Connect with us
X
Categories:

General

Rising Debt Servicing Cost Can Impede Growth – CBN

Published

on

Share this post:

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.


Get More Stories Like This On: Facebook: @AllNaijaEntertainment, Twitter: @AllNaijaEntertainment
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Roisea: Most Advanced Crypto Trading Platform for Bitcoin
Business2 weeks ago

The Role of Regulation in Crypto Investment: Navigating Legal Frameworks

Volatility in Commodities and How to Deal with It
Business3 weeks ago

Volatility in Commodities and How to Deal with It

Expanding Living Space
Lifestyle3 months ago

Expanding Living Space: Prefabricated Workshop Building Kits for Extra Rooms

BeBe Winans
Lyrics3 months ago

BeBe Winans – It All Comes Down to Love [Lyrics]

BeBe Winans
Music3 months ago

[Music] BeBe Winans – It All Comes Down to Love

The Countdown Begins to the Tournament That Has It All
ANE Football Analytical3 months ago

AFCON 2023: A Sporting Spectacle Set to Captivate the World

Litecoin: What Makes It The Crypto Winner?
Technology4 months ago

Runny Inflation Can Drive Cryptocurrency Adoption

Black and White French Bulldog puppies Frenchie Joy
Lifestyle5 months ago

Black and White French Bulldog puppies Frenchie Joy

3 Serious Reasons to Keep Your Teenager Away From Social Media
Lifestyle5 months ago

3 Serious Reasons to Keep Your Teenager Away From Social Media

Boxing vs MMA What Makes Them So Different
Sports6 months ago

Boxing vs MMA: What Makes Them So Different

Roisea: Most Advanced Crypto Trading Platform for Bitcoin
Technology6 months ago

NFTs and Intellectual Property Rights: Shaping Creative Ownership

The Birth of a Rugby Nation South Africas Love Affair with the Sport
Sports10 months ago

The Birth of a Rugby Nation: South Africa’s Love Affair with the Sport

A Beginner's Guide to Radicle (RAD): The Future of Peer-to-Peer Development
Technology11 months ago

A Beginner’s Guide to Radicle (RAD): The Future of Peer-to-Peer Development

Analysis of Nigeria's Renewable Energy Sector: Opportunities and Challenges
Technology11 months ago

Analysis of Nigeria’s Renewable Energy Sector: Opportunities and Challenges

Casino Gaming Poker
Sports12 months ago

What Are The Various Types Of Online Slots?

Luka Modric celebrates after scoring Real Madrid's second goal against Celta Vigo.
Sports1 year ago

Luka Modric set to join Ronaldo in Saudi Arabia’s Al Nassr

WHO World Health Organization
Health1 year ago

WHO debunks claims that tuberculosis is caused by witchcraft, poison

Atiku Abubakar
News1 year ago

2023 Election: Why DSS must arrest Fani-Kayode – Atiku

PDP Logo Umbrella
News1 year ago

PDP suspends National Chairman

The Pastor Daughter Story by Miriam Edem _ ANE Story
ANE Stories1 year ago

[STORY] THE PASTOR’S DAUGHTER (Final Episode 13)

The Pastor Daughter Story by Miriam Edem _ ANE Story
ANE Stories1 year ago

[STORY] THE PASTOR’S DAUGHTER (Episode 12)

The Pastor Daughter Story by Miriam Edem _ ANE Story
ANE Stories1 year ago

[STORY] THE PASTOR’S DAUGHTER (Episode 11)

The Pastor Daughter Story by Miriam Edem _ ANE Story
ANE Stories1 year ago

[STORY] THE PASTOR’S DAUGHTER (Episode 10)

The Pastor Daughter Story by Miriam Edem _ ANE Story
ANE Stories1 year ago

[STORY] THE PASTOR’S DAUGHTER (Episode 09)

The Pastor Daughter Story by Miriam Edem _ ANE Story
ANE Stories1 year ago

[STORY] THE PASTOR’S DAUGHTER (Episode 08)

The Pastor Daughter Story by Miriam Edem _ ANE Story
ANE Stories1 year ago

[STORY] THE PASTOR’S DAUGHTER (Episode 07)

The Pastor Daughter Story by Miriam Edem _ ANE Story
ANE Stories1 year ago

[STORY] THE PASTOR’S DAUGHTER (Episode 06)

The Pastor Daughter Story by Miriam Edem _ ANE Story
ANE Stories1 year ago

[STORY] THE PASTOR’S DAUGHTER (Episode 05)

The Pastor Daughter Story by Miriam Edem _ ANE Story
ANE Stories1 year ago

[STORY] THE PASTOR’S DAUGHTER (Episode 04)

The Pastor Daughter Story by Miriam Edem _ ANE Story
ANE Stories1 year ago

[STORY] THE PASTOR’S DAUGHTER (Episode 03)

The Pastor Daughter Story by Miriam Edem _ ANE Story
ANE Stories1 year ago

[STORY] THE PASTOR’S DAUGHTER (Episode 02)

The Pastor Daughter Story by Miriam Edem _ ANE Story
ANE Stories1 year ago

[STORY] THE PASTOR’S DAUGHTER (Episode 01)

The Pastor Daughter Story by Miriam Edem _ ANE Story
ANE Stories1 year ago

[STORY] THE PASTOR’S DAUGHTER (Complete Episodes)

Papa Loves His Girls by Opeyemi Ojerinde Akintunde_ANE Stories
ANE Stories1 year ago

[STORY] PAPA LOVES HIS GIRLS (Episode 16)

Papa Loves His Girls by Opeyemi Ojerinde Akintunde_ANE Stories
ANE Stories1 year ago

[STORY] PAPA LOVES HIS GIRLS (Episode 15)

Papa Loves His Girls by Opeyemi Ojerinde Akintunde_ANE Stories
ANE Stories1 year ago

[STORY] PAPA LOVES HIS GIRLS (Episode 14)

Papa Loves His Girls by Opeyemi Ojerinde Akintunde_ANE Stories
ANE Stories1 year ago

[STORY] PAPA LOVES HIS GIRLS (Episode 13)

Papa Loves His Girls by Opeyemi Ojerinde Akintunde_ANE Stories
ANE Stories1 year ago

[STORY] PAPA LOVES HIS GIRLS (Episode 12)

Papa Loves His Girls by Opeyemi Ojerinde Akintunde_ANE Stories
ANE Stories1 year ago

[STORY] PAPA LOVES HIS GIRLS (Episode 11)

Papa Loves His Girls by Opeyemi Ojerinde Akintunde_ANE Stories
ANE Stories1 year ago

[STORY] PAPA LOVES HIS GIRLS (Episode 10)

ANE Billboard Hots