The Central Bank of Nigeria (CBN) has cautioned the federal government on the sharp increase in the size of the nation’s external debt which rose by one hundred and nine percent to twenty- one point six billion dollars as at September 30th 2018, from eleven point two eight billion dollars on June 30th, 2015.
The CBN Governor, Mr. Godwin Emefiele, disclosed this while briefing the press on the outcome of yesterday’s meeting of the Monetary Policy Committee in Abuja.
He said, on external borrowings, committee noted the increase in the debt level advising for caution, noting that it could fast be approaching the pre-2005 Paris Club exit level.
Speaking further on the committee’s position, Mr. Emefiele said the committee was not in any way neither condemning nor saying external borrowing was wrong but that adequate care must be taken to avoid a debt trap.
Meanwhile, the committee retained the Monetary Policy Rate (MPR) at fourteen percent.
It also retained the Liquidity Ratio and Cash Reserve Ratio at thirty percent and twenty- two point five percent respectively.
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