FG In Talks With Creditors to Defer Debt Servicing To 2021

The Federal Government  is in talks with lenders  to defer debt service obligations to “2021 and beyond”.

“It’s not debt forgiveness, it’s just rescheduling of our obligations,”  the Finance Minister,Zainab Ahmed. said concerning talks with lenders.

Reuters reports that the minister, who spoke at a web conference on Tuesday,  did not provide details of the lenders with whom talks were held. 

Ahmed said Nigeria was spending around 58% to 60% of revenues to service debt, which was responsible for the request.

The Director General,  Budget Office, Ben Akabueze, also said debt servicing costs were expected to rise by N200 billion in 2020.

The impact of low oil prices has been compounded by shockwaves caused by the new coronavirus pandemic.

Meanwhile. the Federal Government, just like the International Monetary Fund, expects the economy to contract by 3.4% in 2920.

The government also  plans to cut oil production to 1.7 million barrels per day (mbpd), from the 2.1 mbpd initially proposed in the budget, under an agreement brokered by the Organization of the Petroleum Exporting Countries (OPEC).
Akabueze said oil revenues were expected to fall by more than 80%. 

He said the government had revised its projections and expected the economy to contract by 3.4% this year compared with its previous expectation that it would grow by 2.9%.

Nigeria would speed up marginal field licensing and oil mining licence renewals to try to raise revenues, Akabueze said.