CBN’s MPC members disagree with FG’s debt structure, borrowings

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CBN targets $200bn non-oil export revenue

CBN targets $200bn non-oil export revenue

…Warn it will hurt Nigeria soonest

By Elizabethy Adegbesan

Members of the Central Bank of Nigeria’s, CBN,  Monetary Policy Committee, MPC, have expressed concern over the increasing Eurobonds component in the Nigeria’s external debt structure.

They noted that the federal government’s preference of Eurobonds at high interest costs, with the associated exchange rate risk may likely hurt Nigeria soonest.

In his personal statement in the just released communiqué of the May 2022  meeting, a member of the Committee, Asogwa Robert, said: “The escalating fiscal sector deficits with the attendant rising debt ratios are part of the weak links in the domestic economic environment.

“Particularly worrisome about the debt structure, is the increasing accumulation of Eurobonds in the external debt component, while minimising concessionary loans. The unexplained government preference of Eurobonds at high interest costs, with the associated exchange rate risk may…



Source: Vanguard Newspaper