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CBN: FG spent $894m to service foreign debts from January to April 2023

CBN: FG spent $894m to service foreign debts from January to April 2023

 

Data released by the Central Bank of Nigeria (CBN) has revealed that the federal government spent $894 million to service foreign debt obligations from January to April 2023.

The export and international payment data released over the weekend, showed that the federal government spent $ 112.35 million in January 2023, $288.5 million in February, $400.5 million in March, and a significant service of $92.8 million for the month of April.

However, the data revealed also that total direct remittances for the first four months of 2023 was $451.61 million.

Further breakdown showed that in January, $79.2 million was recorded, and in February, $83.76 million was recorded, while in March, $138.6 million was recorded and in April. $159.04 million was recorded.

However, the World Bank had disclosed that money sent home by Nigerians who live abroad is projected to hit $20.9 billion in 2022, with analysts citing the ‘Naira-4-dollar’ scheme and talent exodus as major factors behind the expected increase in remittances.

According to the World Bank’s Migration and Development Brief report, remittance flow to Nigeria grew by an estimated 8.85 per cent in 2022 from $19.2 billion in 2021.

Africa’s biggest economy saw its diaspora remittances plunge to $17.2 billion in 2020 amid the fallout of the COVID-19 pandemic from $25.3 billion

in the previous year.

“Nigeria witnessed a sharp recovery in flows during 2021 (13.2 per cent), maintaining the improved momentum of 2021 into the first quarter of 2022,” the report said.

It however stated that the remittance growth fell in Q2 to 0.5 per cent, compared to the same period in 2021.

“Moreover, the country is reaping little benefit from the surge in crude oil prices, while the expatriate community faces real income losses in the United States, the United Kingdom and the Euro Area,” the report further said.

The World Bank said remittances flow to sub-Saharan Africa grew an estimated 5.2 percent to $53 billion in 2022, with Nigeria being the largest recipient

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