Connect with us

Uncategorized

Fitch Bemoans Nigerian Government Borrowing From CBN

Published

4 years ago

on

Fitch, a credit ratings agency, has sounded the alarm over Federal Government’s reliance on Central Bank of Nigeria(CBN) for loans through Ways and Means facility, to cover up the shortfall in revenue.

Fitch Ratings stated this in its report on Wednesday titled ‘Nigeria’s deficit monetization may raise macro-stability risks’.

Ways and Means financing is basically the printing of money by the CBN to enable the FG to plug its budget deficit.

“Sustained use of direct monetary financing could raise risks to macroeconomic stability – given the current weak institutional safeguards – but we expect the FGN to reduce its use of the facility in 2021,” the report reads.

The FGN directly borrowed 1.9 percent of GDP from the CBN to fund its fiscal deficit in 2020, estimated by Fitch at 3.6 percent of Gross Domestic Product.

While it says it understands the need for the Federal Government to look for ways to finance the budget against a background of the coronavirus pandemic, Fitch said, the use of central bank financing in Nigeria predates the pandemic shock.”

The report added, “We estimate that the balance of the government’s WMF with the CBN was around N9.8tn (6.7 percent of GDP) at end-2019, up from N5.4tn (4.2 percent of GDP) at end-2018.

“Unlike the government, we include this balance in our metrics for Nigeria’s government debt. Borrowing from the facility accounted for 30 percent of the FGN’s debt at end-2019, on our estimates.”

Fitch Rating stated that repeated central bank financing of government budgets could raise risks to macro-stability in the context of weak institutional safeguards that preserve the credibility of policymaking and the ability of the central bank to control inflation.

The credit rating agency, however, provided a positive outlook for the Nigerian government’s fiscal revenue and expenditure projections for 2021 describing it as broadly realistic, saying “we believe it should preclude further significant borrowing by the FG from the CBN facility this year.”

Related Topics:

Justice Okamgba is journalist at Grassroots.ng

Continue Reading

Uncategorized

Rented Crowed, APC AKIDA Leader with Zamfara State Govt. Buses Embark on Campaign of Calumny at DSS Office

Godiya Hamza, a Media Analyst, writes from Abuja

Published

1 week ago

on

November 13, 2024

By

APC AKIDA

The orchestrated campaign of calumny against the Honourable Minister of State for Defence H.E Dr Bello Muhammad Matawalle MON by a group of street orchins recruited by the leader of APC AKIDA Tijjani Ramallan is very  preposterous and indecent.

This is politics too far, Ramadan has been attacking President Bola Ahmed Tinubu GCFR right from campaign days. He never supported or participated in APC activities, he has been jealous of Matawalle loyalty to our President.

Tijjani Ramallan has been sponsoring Banditry and romancing with criminals.

The leader of the APC AKIDA  Tijjani Ramallan is being sponsored by the state government to attack the person of Dr Matawalle. It is expected that by now the DSS should have arrested him . He has found himself as a willing tool to be manipulated by Governor Dauda Lawal in attacking Dr Matawalle.

The earlier smear campaign embarked by zamfara state government which was stopped by a court order has forced them to shift to the use of APC AKIDA to carry out their mischief.

What zamfara people need is good governance and not wasting the state resources in trying to pull Matawalle down.

Pull him down syndrome pays no body.

Continue Reading

Spotlight

World’s First Surviving Nonuplets Visits Italy To Appear On A TV Show

Published

8 months ago

on

March 19, 2024

By

In December 2022, aged one and a half years old, the world’s first surviving nonuplets went on their first plane flight.
They travelled from Morocco, where they were born and lived for 19 months, to their parents’ home country of Mali.

And now, two months shy of their third birthday, the nonuplets have made their first trip to Europe, visiting Italy to appear on our televised talent show Lo Show dei Record!

We bet it feels so beautiful to see them all grow and wish them the very best 🥳

Continue Reading

News

Picture Of The 17-Year-Old Hawker Who Was Shot Dead By The Police, Which Led To Wuse Market Fire Saga Yesterday

Published

8 months ago

on

March 13, 2024

By

Yesterday, Angry youths set parts of the popular Wuse market in Abuja on fire over the killing of a 17-year-old hawker simply identified as Musa.

The office of the Abuja Markets Management Limited (AMML) inside the market as well as some cars parked at the market’s car park were reportedly affected.

It was gathered that a suspect who was being tried at the mobile court in the market attempted to run away, but was allegedly shot and killed by the police.

A senior official of the AMML, who pleaded for anonymity, confirmed the incident.

He said the suspect was already convicted of a crime which was not mentioned and in the process of taking him to court for another offence, the boy bolted and tried to run when he was shot by the police. The AMML official said that was what provoked the attackers to burn down some shops, the office of AMML and some vehicles.

The situation caused a stampede in the market as people rushed to save their property.

It is not clear how many people were injured in the stampede as people scaled the fences while some pushed their way through the few gates available. But so many shops and goods got destroyed by the fire.

The After maths of the fire
Continue Reading

Trending