Nigeria at risk of ‘future debt servicing challenges’, CBN warns

The Monetary Policy Committee of the Central Bank of Nigeria has said the Federal Government’s recurrent expenditure remained relatively high when compared with its capital expenditure, signalling future debt servicing challenges.

The MPC said this on Tuesday in its communique at the end of its first meeting of the year.

It called on the government to explore the option of effective partnership with the private sector to improve funding sources necessary to address the huge infrastructural financing deficit in the country.

“The committee expressed concern over the rising public debt stock, as recurrent expenditure remained relatively high, compared with capital expenditure, thus, signalling future debt servicing challenges,” the communique said.

Nigeria’s total public debt stock rose by N1.21tn in the third quarter of last year to N32.22tn, according to the Debt Management Office.