Nigeria to pay foreign debts before other obligations

Nigeria to pay foreign debts before other obligations

The Federal Government of Nigeria says it will pay foreign debts before settling other obligations.

Mr Godwin Emefiele, the Governor of the Central Bank of Nigeria (CBN), disclosed this at the ongoing International Monetary Fund/World Bank Annual Meetings in Washington DC, while answering questions during a press briefing.

According to him “We have ensured that any of our debts due is given utmost priority, particularly foreign debt.

“It is like first line charge, and the minister talks to me about it. And we ensure that wherever we are going to find the dollar, we would pay any of our debts, even before we service any obligation. That is a rule if it is Nigeria’s authentic sovereign debt.”

Emefiele said 30 percent of the forex spent on imported items goes to the importation of petroleum products. Adding that the country will save foreign exchange when Dangote refinery with capacity to process 650,000 barrels of crude oil daily into petroleum products, begins production latest by July 2022.

The CBN governor said the country would save forex and export those refined products.

“We know that the refineries that are abroad are already scared because they know the market they will lose because we know that Nigerians will prefer to patronize that (Dangote refinery) than patronize foreign imported refined products where we will save transportation and logistics



Author: Greg