FG’s Local Currency Debts To Hit N44tn In 2022, Says ReportJanuary 27, 2022
A report by Agusto & Co. Limited has estimated that the Federal Government’s local currency debts will rise to N44tn in 2022.
This was disclosed in a report, titled ‘Nigeria in 2022’, on the economic outlook for 2022.It said, “Local currency debts of the FGN [Federal Government of Nigeria] will grow to about N44tn or about 9X of its revenues. The median for key countries in sub-Saharan Africa is about 2X.
“Because of the high cost of servicing these debts at commercial rates, the Central Bank of Nigeria will continue to accommodate the FGN by lending to them at rates below inflation, thus reducing FGN’s borrowing requirement from the markets and put a downward pressure on interest rates as banks, pension funds, insurance companies and other institutional investors compete for government securities