Elombah.com
10 May 2011
Nigeria's central bank might raise interest rates again this year if the government fails to rein in spending, its chief said Tuesday as he outlined plans to spur investment in agriculture and industry. Central Bank of Nigeria Governor Sanusi Lamido Sanusi told Dow Jones Newswires the government must address its public finances because high salaries for government workers are contributing to inflationary pressures.
Nigeria’s total debt reached $33.4 billion at the end of 2010, Vanguard reported, citing the director-general of the Debt Management Office, Abraham Nwankwo.
External debt stood at $4.5 billion, while domestic borrowing was 4.5 trillion naira ($28.9 billion), the Lagos- based newspaper said.
The West African nation intends to limit its debt-to-gross domestic-product-ratio to 25 percent over the next four years. The ratio currently stands at 18 percent,.
Sanusi Lamido Sanusi said that the Central Bank of Nigeria stands ready to tighten monetary policy to curb inflation if a much-needed fiscal contraction doesn't materialize.
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