Nigeria will pay 1.8 trillion naira extra interest in 2023 if senate rejects a loan-to-bond swap request

Date:

ABUJA, Jan 3 – Nigeria will pay 1.8 trillion naira ($4 billion) extra interest in 2023 if parliament rejects a loan-to-bond swap request on the central bank’s overdrafts to the government, President Muhammadu Buhari said on Tuesday after signing the 2023 budget into law.

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The Senate last week delayed a decision on the president’s request to convert $53 billion worth of central bank overdrafts to the government into 40-year bonds after some lawmakers questioned the plan.

In a speech on Tuesday, Buhari said the government currently pays a 3% margin above the central bank’s lending rate of 16.5% but his administration has negotiated a rate of 9% for the bonds.

Lawmakers increased the size of the 2023 budget by 6.4% to 21.83 trillion naira ($49 billion) after they raised the oil price assumption to $75 a barrel from $70.

“Considering the imminent transition process … I decided to sign the 2023 appropriation bill into law … to enable its implementation to commence without delay,” Buhari said, referring to a general election coming up in February.

Having completed the maximum two terms allowed by the constitution, Buhari is not standing for re-election.

Rising debt, weak economic growth, high inflation and mounting insecurity are major issues for many Nigerian voters.

The International Monetary Fund has urged Nigeria to phase out central bank financing of the government to help reduce double-digit inflation.

Economists say Nigeria’s government is spending more money on debt repayments than on education and health, but Buhari has said his government had no choice but to borrow its way out of two recessions in the past seven years.

Godwin Okafor, The Naija247news
Godwin Okafor, The Naija247newshttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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