The Governor, Central Bank of Nigeria, Mr. Lamido Sanusi, has said that government increased its borrowing in securities by N700bn in four months.
The governor disclosed on Thursday in Lagos that government also reduced its savings to commercial banks and with the CBN by about N1.4tn during the same period.
He said, “Between December 31, 2012 to April 30, 2013, government increased its borrowing in securities by N700bn. It reduced its savings to commercial banks and the CBN by about N1.4tn. Technically, the government has spent more than N2tn in four months, which is a lot of money.”
According to the Debt Management Office, the Federal Government borrowed a total of N914.69bn from domestic sources between 2011 and 2012, bringing its total domestic debts to N6.54tn as at December 31, 2012.
Statistics posted on the DMO website showed that the FGN Bonds accounted for N4.08tn or 62.41 per cent of government’s total domestic debts.
Nigeria Treasury Bills accounted for N2.12tn or 32.47 per cent of the total domestic debt, while Nigeria Treasury Bonds accounted for N334.56bn or 5.12 per cent of the debts.
Sanusi recently cautioned against excessive spending on military operations in three states in the North-East — Borno, Adamawa and Yobe, where state of emergency had been declared.
Sanusi, while addressing journalists after the end of a two-day Monetary Policy Committee meeting held at the CBN headquarters in Abuja, argued that excessive spending on military operations posed a major risk to the inflation outlook.
Headline inflation increased from 8.6 per cent in March to 9.1 per cent in April, remaining within the target single digit range for the fourth consecutive month in 2013.
The figure, according to the central bank boss, reflects a combination of base effect and the success of tight monetary policy, which have led to a muted growth in the monetary aggregates and exchange rate stability.