Saturday, June 30, 2018 08:00 AM / Proshare Content
Nigeria: Economic Dashboard @ 290618
From the Editor’s Desk
According to the Debt Management Office of Nigeria, the Federal Government at the end of the first quarter of 2018 paid N642 billion in debt servicing on domestic debt instruments alone. Thereby reflecting a 49.8 % and 51% astronomical increase in debt servicing compared to the previous quarter and year, where debt servicing stood at N 429.75 and N424 billion, respectively.
The interest on recurrent expenditure streaming from domestic debt alone in the first quarter of 2018 made up 32% of the total amount forecasted for debt servicing in 2018 and 52% of the actual amount incurred on domestic debt servicing tagged in 2017.
Fig 1: Domestic Debt servicing
This capture both the huge absorption of domestic debt over a relatively short horizon in attempt to reflate the economy, coupled with the high cost of short term domestic debt instrument. This could pave the path for a hard-pressed position for the fiscal authorities, especially if non-oil revenue is deeply undercut.
Although it is expected that the fiscal authority will circumvent the domestic money market in attempt to dampen the cost of debt servicing in the period to come. However, with the on-going jolt in inflation premium abroad and a rise in effective interest rate in the United States, the expected long term rate on external debt will increase, pushing the cost of external debt up. This scenario is already being witnessed as growing indifference manifest in debt instrument of emerging economies. Obviously, there is a need to prioritize spending properly, strengthen fiscal housekeeping and improve the efficiency in revenue collection especially in the informal sector; in order to avoid being caught up in a debt over hang or run into a liquidity drought.
Monday, July 02, 2018
The 17th Nigeria Oil & Gas Conference & Exhibition (NOG) 2018 will commence this day in Abuja with the theme “Driving Nigeria’s Oil & Gas Industry Towards Sustained Economic Development and Growth”.
The Association of Enterprise Risk Management Professionals (AERMP) will hold its 2018 training on Managing Risks in Credit Portfolio this day, while the 2nd Edition of the Nigerian Internet Governance Forum holds in Abuja.
Tuesday, July 03, 2018
The Nigerian Shippers’ Council will hold its 15th International Maritime Seminar for Judges this day in Abuja; while the 11th Jackson Annual Lecture (JAL) titled “The Media and the Development Challenge in Nigeria at a Time of Crisis” holds on the same day at the University of Nigeria, Nsukka.
Wednesday, July 04, 2018
The Health Care Nigeria Conference will commence this day in Lagos.
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Thursday, July 05, 2018
Fate Foundation will this day hold its 4th Policy Dialogue Series on Entrepreneurship in Abuja, while the Business Process Management Institute (BPMI) holds its Induction Ceremony on the same day in Lagos.
The Nigerian-British Chamber of Commerce (NBCC) will this day hold its Annual General Meeting in Lagos, while the July Edition of the Lagos PR Clinic hosted by the Nigerian Institute of Public Relations (Lagos Chapter) holds on the same day.
Friday, July 06, 2018
The Global Small and Medium Enterprise’s (SME’s) Summit will hold this day in Lagos.
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