CBN Sounds Out Warning As External Borrowing Soars

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CBN Governor, Godwin Emefiele
By; VICTOR DAZANG, Kaduna
The Central Bank of Nigeria (CBN) has through its Monetary Policy Committee (MPC) cautioned the Federal Government against the sharp increase in the scale of external debt which rose to 109 percent from $11.28 billion on June 30th 2015  to  $21.6 billion as at September 30th 2018.
The committee retained the Monetary Policy Rate(,MPR) as well as the  Liquidity Ratio and Cash Reserve Ratio at 14, 30 and 22.5 ,percent respectively.
These were disclosed recently by the CBN Governor, Godwin Emefiele  while briefing the press on the outcome of the MPC meeting in Abuja.
However, Emefiele explained further to clarify the committee’s stand by confirming  that the committee is not condemning external borrowing but caution most be exercised to abort debt trap.

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