Sunday, June 1, 2025
  • Share your story
  • About
  • Contact
Economy FootPrint
  • Home
  • News & Politics
  • Opinion
  • Finance & Economy
  • Aviation
  • Editorial
  • Transport & Blue Economy
  • Features | Analysis
  • Health | Environment
Economy FootPrint
Home Top News

Breaking: FG owes CBN N20trn as FGN debt is projected to hit over N52trn in 2023

EconomyFoot Print by EconomyFoot Print
October 19, 2022
in Top News
Reading Time: 2 mins read
0
Share on FacebookShare on Twitter

Related posts

OPFY: Our Non-Kinetic Operations Secured Release Of Over 100 Kidnapped Victims – General Opurum

OPFY: Our Non-Kinetic Operations Secured Release Of Over 100 Kidnapped Victims – General Opurum

May 31, 2025
Northwest Is Safer Since Commencement of Operation Fansan Yamma

Northwest Is Safer Since Commencement of Operation Fansan Yamma

May 30, 2025

The Federal Government is indebted to the Central Bank of Nigeria (CBN) to the tune of N20 trillion, the Minister of Finance, Budget and. National Planning, Mrs. Zainab Ahmed has disclosed.
She disclosed this on Tuesday in Abuja during the public presentation of the 2023 budget estimates.
The Minister also revealed the plan by the federal government to raise bonds to repay the CBN debt over a 40-year period.
This repayment plan contravenes the provision in the CBN Act 2007 guiding CBN lending to the government.
“”The total Ways and Means (CBN lending to the FG) today is N20 trillion and we have approval to securitize and the securitization will be over in 40-year period with an interest rates of 9 percent. But over the years, we have been paying interest component and the current rate that is charged on the ways and means” the Minister said.
But the CBN Act of 2007 prohibited such repayment plan in Section 38 (3b).
The Act states in Section 38 (1) that “Notwithstanding the provisions of section 34 (d) of this Act, the Bank may grant temporary advances to the Federal Government in respect of temporary deficiency of budget revenue at such rate of interest as the Bank may determine.”
(2) “The total amount of such advances outstanding shall not at any time exceed five per cent of the previous year’s actual revenue of the Federal Government.”
(3) “AlI Advances made pursuant to this section shall be repaid- (a) as soon as possible and shall in any event be repayable by the end of the Federal Government financial year in which they are granted and if such advances remain unpaid at the end of the year, the power of the Bank to grant such further advances in any subsequent year shall not be exercisable, unless the outstanding advances have been repaid, and (b) in such form as the Bank may determine provided that no repayment shall take the form of a promissory note or such other promise to pay at a future date or securitization by way of issuance of treasury bills, bonds, certificates or other forms of security which is required to be underwritten by the Bank.”
Thus the repayment plan by the FG will suffer a huge setback and perhaps set it up on the part of fiscal crises as the CBN might not lend to the FG anymore.
The debt profile of the Federal Government currently stands at N42.85trn and based on the over N10.78trn. this should push FG’s debt to over N52trn in 2023.
The FG revenue projections for 2023 stands at about N9 trn in the N20.5 trillion.
Speaking on subsidy, the minister said the FG has provided N3.3trn as subsidy for 2023 fiscal in spite the shallow revenue position of the FG.
She said: “We have provided N3.3trn to be used for fuel subsidy. For us on the fiscal side, it’s not something we should be doing. But we live in a nation and we have different arms of government so we will have to do what is practical.”
On education, she said N2.0 trillion has been provided for the education sector including N470bn to pay the increment portion of the adjustment of salaries for lecturers as well as the revitalisation that was negotiated with ASUU. This is in addition to the regular salaries. If you factor in that, the total package will be N515 billion she noted.

Previous Post

Flutterwave appointments lux, ex-JP Morgan Chase Chief Risk Officer as Senior Advisor

Next Post

FG to put up over N30trn assets for private investors

Next Post

FG to put up over N30trn assets for private investors

Leave a Reply Cancel reply

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

RECOMMENDED NEWS

DG/CEO Anosike Elected President ECOWAS Committee of Directors of National Hydrological and Meteorological Services

DG/CEO Anosike Elected President ECOWAS Committee of Directors of National Hydrological and Meteorological Services

6 days ago
Why Akume should not be removed from office

Why Akume should not be removed from office

3 weeks ago

Group Knocks Wike Over Corruption In Land Administration, Others

8 months ago

Breaking.. Sokoto Deputy Governor Resigns PDP Membership

2 years ago

FOLLOW US

  • 86.2k Followers

BROWSE BY CATEGORIES

  • Aviation
  • Brands
  • Crime
  • Editorial
  • Features | Analysis
  • Finance | Insurance | Pension
  • Health | Environment
  • Industry | Trade | Commerce
  • International
  • Interview | Profile
  • News
  • Opinion
  • Politics
  • Small Business
  • Sports
  • Top News
  • Transport & Blue Economy
  • Uncategorized

BROWSE BY TOPICS

2023 Benue Budget Abuja-Kaduna Rail Access Corporation Access pension airports concession Aviation Ayu Benue Budget Benue Community Buhari Business CBN Central Bank Dana Air Economy FGPL Herdsmen Herdsmen attacks insecurity insurance Maritime Min of Transport MSMEs NAICOM NCAA Nigeria Nigeria -Cameroon Border Post Nigeria Air NRac Onne Port ooh Orrom Ortom PDP PenCom pension Railway Sambo Jaji Transcorp Transcorp Group Transcorp Hotels Plc UBA Ukohol Wike Wildon Ideva

BROWSE BY CATEGORIES

  • Aviation
  • Brands
  • Crime
  • Editorial
  • Features | Analysis
  • Finance | Insurance | Pension
  • Health | Environment
  • Industry | Trade | Commerce
  • International
  • Interview | Profile
  • News
  • Opinion
  • Politics
  • Small Business
  • Sports
  • Top News
  • Transport & Blue Economy
  • Uncategorized

Economy Footprint

The EconomyFootprint is published by Ideas Tent Communications LtdĀ®. All Rights Reserved.

Follow us on social media:

Recent News

  • Terrorist Kingpin Abu Fatima Eliminated  In Borno
  • OPFY: Our Non-Kinetic Operations Secured Release Of Over 100 Kidnapped Victims – General Opurum
  • Northwest Is Safer Since Commencement of Operation Fansan Yamma

Category

  • Aviation
  • Brands
  • Crime
  • Editorial
  • Features | Analysis
  • Finance | Insurance | Pension
  • Health | Environment
  • Industry | Trade | Commerce
  • International
  • Interview | Profile
  • News
  • Opinion
  • Politics
  • Small Business
  • Sports
  • Top News
  • Transport & Blue Economy
  • Uncategorized

Recent News

Terrorist Kingpin Abu Fatima Eliminated  In Borno

May 31, 2025
OPFY: Our Non-Kinetic Operations Secured Release Of Over 100 Kidnapped Victims – General Opurum

OPFY: Our Non-Kinetic Operations Secured Release Of Over 100 Kidnapped Victims – General Opurum

May 31, 2025
No Result
View All Result
  • Home
  • Politics
  • News
  • Sports
  • Opinion