According to CBN statistics, the federal government of Nigeria spent $1.17 billion in the first half of 2023 servicing foreign debt. The period's largest spending was in the month of June, which totaled $543 million. The information also reveals that between January and June, direct remittances totaled $951.99 million. In the first half of 2023, the federal government spent $1.17 billion on obligations to service foreign debt. The Central Bank of Nigeria (CBN) has revealed data on exports and international payments.

During the first half of 2023, the Central Bank of Nigeria spent $951.99 million on direct remittances. According to reports, the Nigerian government spent more than 85% of its income on debt repayment in February 2023. Nigeria's president Bola Tinubu has committed to remove the country's excessive reliance on borrowing for government expenditures. He pledged to reduce the added strain of debt payment on the administration of Nigeria's constrained tax resources.

According to CBN statistics, the federal government paid $112.35 million in January 2023 to pay down its foreign debts. In February, the government spent $288.5 million, and in March, it spent $400.5 million. In April, a large $92.8 million expenditure was incurred. Additionally, as of May, $221 million had been spent on meeting these obligations. The month of June, which had an exceptionally high maintenance cost of $543 million, the highest sum in 13 months, was the most striking aspect of this data, though.

 Data from the Debt Management Office show that China, the World Bank, the African Development Bank, the Islamic Development Bank, Japan, France, and other institutions are among Nigeria's biggest lenders. Payment for the time period According to the analysis of the statistics, direct remittances totaled $951.99 million for the first half of 2023. The figures show that February's total was $83.76 million while January's total was $79.2 million. In March, a large $138.6 million was totaled, and in April, $159.04 million was moved.

A $202 million influx was recorded in May, while a significant rise of $297.4 million in direct remittances was recorded in June. The federal administration said on Monday, August 29, 2023, that it had no intention of borrowing money from any local or foreign organizations after abolishing the gasoline subsidy and harmonizing exchange rates. Chief Wale Edun, Minister of Finance and Coordinating Minister for the Economy, made this statement on Monday in Abuja at the end of the first Federal Executive Council meeting.

Edun claims that a variety of palliatives have been made available as a result of the increased funds from subsidy withdrawal to decrease the effect over the short, medium, and long term. He reiterated the intention of President Bola Tinubu's administration to extricate the economy from the bind it has found itself in over time. Amid the CBN's depreciation of the currency, Nigeria's debt stock reached N82 trillion. Before the Central Bank of Nigeria (CBN) exchange rate unification, which was announced on Wednesday, June 14, 2023, the public debt of Nigeria increased from N77 trillion to N82 trillion, according to a previous article by Legit. ng.

In accordance with a news announcement from the CBN, all exchange rate windows have been merged into the Importers and Exporters (I&E) window to demonstrate this. The Debt Management Office (DMO) estimated Nigeria's debt portfolio at N448 billion before the naira's floating.

CBN GOES AFTER FIVE BANKS DIRECTOR

Don't Write-Off," the CBN warns, as four banks approve loans totaling over N112 billion. Financial institutions should follow the recommendations the Central Bank of Nigeria provided about their senior directors who have debts. This is because directors of the Union Bank of Nigeria, Stanbic IBTC Holdings, Sterling Bank, and Access Holdings have received loans totaling more than N122 billion. Executive directors and staff members frequently receive loans with interest rates below the market.

The Central Bank of Nigeria (CBN) has introduced strict fines aimed at directors of financial institutions that obtain loans from the banks they are linked with in an effort to combat possible conflicts of interest within the banking industry. This action comes after N122.7 billion in loans and advances from four commercial banks were given to companies in 2022 that were under the control of senior management executives and connected parties.

The financial institution's directors, associates, and staff members received insider-related loans.

These financial institutions include Access Holdings, Sterling Bank, Stanbic IBTC Holdings, and Union Bank of Nigeria.

CBN insider loan guidelines The Central Bank of Nigeria's Circular BSD/1/2004, published February 18, 2004, on "Disclosure of Insider Related Credits in the Financial Statements of Banks," sets forth requirements for insider-related loans and advances. A bank is prohibited under the BOFIA Act 2020 from lending any of its directors or important shareholders more than 5% of its paid-up share capital.

Breakdown of banks' director's/employees' loans.

Holdings of Stanbic IBTC: N56.5 billion 53.4 billion Naira at Union Bank of Nigeria N2.4 billion, Sterling Bank N469.01 million Access Holdings Directors are strongly cautioned by CBN over non-performing loans. In another circular, the CBN emphasized that it would do away with directors who had defaulted on loans from bank boards and place them on a blacklist for employment at all other financial institutions. The following is taken from the document: "Any director whose credit facility or that of his/her related interests remains non-performing in the banking subsidiary of an FHC, for more than one year, shall cease to be on the Board of the Financial Holding Company (FHC), shall be blacklisted from sitting on the Board of such banking subsidiary, or that of any other financial institution under the purview of the CBN."