Nigeria’s government is seeking lawmakers’ approval to restructure debt owed to the central bank and also to take on an additional loan, which would raise the amount owed to $52 billion.
The administration asked that senators allow for the restructuring of so-called ways and means borrowing from the Central Bank of Nigeria, converting it to 40-year bonds at 9% interest
Bloomberg reports that as of 19th December 2022, the loans stood at 22.7 trillion naira.
The Government has also asked for a three-year moratorium on interest payments on the existing debt, and sought another 1 trillion naira from the CBN on the same terms.
Nigeria’s public-debt stock was 44 trillion naira on Sept. 30; adding the central bank loans — including the extra 1 trillion naira sought — raises the total by 54% to 67.7 trillion naira. That will add further pressure to debt-service costs, which are forecast to surpass revenues this year, constraining the country’s capacity for critical spending.
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