Sunday, March 7, 2021

Debt Servicing, Greatest Risk To Nigeria’s Economy – Adesina

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The African Development Bank has projected a growth rate of 1.5 per cent for Nigeria in 2021, and a 2.9 per cent growth in 2022.

The President, AfDB, Dr Akinwumi Adesina, disclosed this while delivering a speech at the first national tax dialogue.

He also said that debt service payments posed the greatest risk to Nigeria, given shrinking oil revenues.

He noted that the economy shrunk by three per cent in 2020 on account of falling oil prices and effects of the lockdowns on economic activity.

The pandemic had impacted on budgetary balances and increased debt burdens, he said.

He said that Nigeria’s debt-to-GDP ratio would push debt service payments beyond more than 60 per cent of federally collected revenues.

FG’s January Bonds Oversubscribed By N88.28bn.

The Federal Government’s bonds for January worth N150bn which were auctioned on Wednesday were oversubscribed by N88.28bn, the Debt Management Office disclosed on its website.

The total subscription received from investors for the bonds was N238.28bn, comprising of N91.84bn for 16.2884 per cent FGN March 2027 bonds; N106.37bn for 12.5 per cent FGN March 2035 bonds; and N40.07bn for 9.8 per cent FGN July 2045 bonds.

The auction result added that out of the 125, 99 and 77 total bids for the tenures, 73, 44 and 28 bids were successful.

It stated that a total of N122.36bn was allotted comprising of N49.4bn, N57.93bn and N15.03bn respectively for the tenors.