The Governor, Central Bank of Nigeria,
Mr. Lamido Sanusi, has said that government increased its borrowing in
securities by N700bn in four months.
The governor disclosed on Thursday in
Lagos that government also reduced its savings to commercial banks and
with the CBN by about N1.4tn during the same period.
He said, “Between December 31, 2012 to
April 30, 2013, government increased its borrowing in securities by
N700bn. It reduced its savings to commercial banks and the CBN by about
N1.4tn.
Technically, the government has spent more than N2tn in four
months, which is a lot of money.”
According to the Debt Management Office,
the Federal Government borrowed a total of N914.69bn from domestic
sources between 2011 and 2012, bringing its total domestic debts to
N6.54tn as at December 31, 2012.
Statistics posted on the DMO website
showed that the FGN Bonds accounted for N4.08tn or 62.41 per cent of
government’s total domestic debts.
Nigeria Treasury Bills accounted for
N2.12tn or 32.47 per cent of the total domestic debt, while Nigeria
Treasury Bonds accounted for N334.56bn or 5.12 per cent of the debts.
Sanusi recently cautioned against
excessive spending on military operations in three states in the
North-East — Borno, Adamawa and Yobe, where state of emergency had been
declared.
Sanusi, while addressing journalists
after the end of a two-day Monetary Policy Committee meeting held at the
CBN headquarters in Abuja, argued that excessive spending on military
operations posed a major risk to the inflation outlook.
Headline inflation increased from 8.6
per cent in March to 9.1 per cent in April, remaining within the target
single digit range for the fourth consecutive month in 2013.
The figure, according to the central
bank boss, reflects a combination of base effect and the success of
tight monetary policy, which have led to a muted growth in the monetary
aggregates and exchange rate stability.
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