- The CBN has revealed steps the federal government must take to deal with Nigeria's rising debt
- The apex bank's governor, Godwin Emefiele, said that the government must reduce the cost of government and stop much reliance on oil proceeds
- Emefiele also cautioned the government against sharing oil revenue among its three tiers
The Central Bank of Nigeria (CBN) has called the attention of the federal government to the rising debt profile in the country.
The apex bank in Nigeria made this call during the 271st meeting of its Monetary Policy Committee (MPC) in Abuja on Friday, January 25, Premium Times reports.
The caution was contained in a state made by the governor of the CBN, Godwin Emefiele, who pointed out that the nation's debt was growing faster than its local and international revenues.
The CBN warned against the sharing of oil proceeds among the three tiers of government during the monthly Federation Accounts Allocation Committee (FAAC) meetings.
Emefiele, therefore, advised the government to take certain steps towards preventing the rising debts henceforth.
As one of the major steps to be taken, the CBN warned against the sharing of oil proceeds among the three tiers of government during the monthly Federation Accounts Allocation Committee (FAAC) meetings.
Moreover, the MPC urged the government to stop sole reliance on revenues and focus on diversifying the nation's economy by reforming its tax systems.
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Also, the committee said that the country will experience tremendous growth and development economically if the cost of governance is reduced drastically.
Meanwhile, Legit.ng reported that President Muhammadu Buhari had on Monday, January 13, signed the Finance Bill into law.
Recall that the president had in 2019 sent the bill alongside the 2020 budget to the National Assembly for consideration.
According to the thread of tweets posted by President Buhari, the newly signed law was put in place to reform Nigeria’s tax laws to align with global best practices and support MSMEs in line with the government's Ease of Doing Business reforms.
The law will also incentivize investments in infrastructure and capital markets and raise government revenues.
President Buhari noted that his administration is the first since 1999 to accompany the budget with a Finance Bill which is specially designed to support its implementation. He stressed that the bill would create a truly enabling environment for business and investment by the private sector.
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