On Monday, Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, voiced concerns over the escalating global public debt, particularly in developing nations, during the opening of the World Bank/IMF/WAIFEM regional training on Medium-term Debt Strategy (MTDS).
Cardoso noted that Nigeria faces moderate overall risk of sovereign stress but emphasized that the country’s sovereign profile remains stable despite near-term risks attributed to unfavorable global market conditions and increased debt burden post-COVID-19 pandemic.
He highlighted that slow economic growth, elevated borrowing costs, constrained liquidity, and eroded reserves have compounded Nigeria’s economic challenges.
Cardoso pointed out that the current economic strain, aggravated by geopolitical conflicts and natural disasters, poses a threat to macroeconomic stability and financial recovery in the sub-region.
Moreover, he stressed the importance of diversifying financing sources, including issuing sovereign bonds and borrowing within domestic markets, to mitigate vulnerabilities associated with external borrowing.
CBN Adjusts FX Rate for Customs Import Duties
In a bid to address concerns and uncertainties surrounding import duty assessment levies applied by the Nigeria Customs Service (NCS), the CBN adjusted the foreign exchange (FX) rate on Customs import duties.
The FX rate on Customs import duties has been revised to N1,544.081 to a dollar from N1,630.159 to a dollar, representing a 5.3% reduction.
This adjustment aims to provide importers with a more predictable and stable import regime, thereby enabling effective planning and reducing uncertainties in determining revenue and cost structures.
The CBN reiterated its commitment to ensuring stability in the FX market and fostering market confidence necessary for economic growth and development.
In conclusion, while acknowledging the challenges posed by rising global debt, the CBN remains proactive in implementing measures to mitigate risks and promote economic stability in Nigeria.
