Federal Government Sends Strong Message To Nigerians, Seeks Help from All Citizens To Pay CBN’s N20trillion Loan

0

INEC Adhoc Staff Recruitment Portal 2022 for 2023 Election | INEC Recruitment Portal login

The federal government has announced plans to repay its N20 trillion debt owed to the Central Bank of Nigeria (CBN) by issuing securities such as treasury bills and bonds for Nigerians to buy.

 

Zainab Ahmed, minister of finance, budget and national planning, made this known in Abuja while giving a breakdown of the 2023 appropriation bill on Wednesday, the Cable reports.

BREAKING: David Mark Dies in United Kingdom [PHOTOS]

The federal government has been borrowing from the CBN through “Ways and Means”

Ministry of Foreign Affairs Massive Job Recruitment Exercise 2022 - 132 Positions

 

Ways and Means is a loan facility through which the CBN finances the government’s budget shortfalls.

 

In layman’s terms, it is considered CBN printing money to give back to the federal government in shortage of funds

 

 

 

Ahmed, while speaking, confirmed that President Muhammadu Buhari had approved the securitisation of the N20 trillion debt.

Federal Government Sends Strong Message To Nigerians, Seeks Help from All Citizens To Pay CBN’s N20trillion Loan

 

She said:

 

“The total Ways and Means are N20 trillion, and President Muhammadu Buhari has approved securities.

 

The securitisation will be over 40 years with an interest rate of nine percent.

 

“Over the years, we have been paying the interest component at the current rate that is charged on the Ways and Means.”

 

“The total Ways and Means today is 20 trillion and we have the approval to securitize.

Social Media on Fire As Leaked S£x Video of Daughter of Congo-Brazaville’s President Surfaced Online

The securitization will be over in a 40-year period with an interest rate of 9%. But over the years, we have been paying the interest component at the current rate that is charged on the Ways and Means.

 

The move by CBN means that Nigerians will need to buy the federal government treasury bills and bonds.

 

A Treasury bill is a short-term government debt obligation backed by the Treasury Department with a maturity of one year or less.

While a bond is a fixed-income investment representing a loan made by an investor to a borrower, usually corporate or governmental..Continue Reading

 

Federal Government Sends Strong Message To Nigerians, Seeks Help from All Citizens To Pay CBN’s N20trillion Loan

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.