Nigeria’s Level Of Borrowing Is Reasonable, It’s Not High – Finance Minister, Zainab Ahmed

February 26, 2021
48 Views

Despite Nigeria owing $86.39 billion (N32.9 trillion) to external creditors, the Minister of Finance, Zainab Ahmed, said the nation’s level of borrowing is not unreasonable.

Nigeria's Level Of Borrowing Is Reasonable, It's Not High - Finance Minister, Zainab Ahmed 1

Speaking to newsmen on Thursday at a media briefing at the State House in Abuja, Zainab said that Nigeria’s economy will regress and get stunted if the country refuses to borrow to build infrastructures.

The minister, who insisted that the level of borrowing by the government is still within reasonable threshold, said the nation will continue to borrow to finance infrastructural development.

“There is a lot of sensitivity in Nigeria about the level of borrowing by the government and it is not misplaced. The level of borrowing is not unreasonable; it is not high.

“The problem we have is that of revenue. So, what we need to do is to increase revenue to be able to enhance our debt-to-GDP obligation capacity.

ALSO READ: We Would Have Been In Trouble If I Hadn’t Forced Unemployed Nigerians Into Agriculture – President Buhari

“If we say we will not borrow and, therefore, not build rails and major infrastructure until our revenue rises enough, then, we will regress as a country. We will be left behind, we won’t be able to improve our business environment and our economy will not grow. So, it is a decision that every government has to take.

“Our assessment is that we need to borrow to build our major infrastructure. We just need to make sure that when we borrow, we are applying the borrowing to specific major infrastructure that will enhance the business environment in this country.

“Again, we all have to work not just the federal government but state governments to increase our revenue to enhance our debt service obligations.”

She said care has to be taken to ensure that only projects that will enhance the business environment and yield more revenue into the treasuries of the country are embarked upon.

KanyiDaily recalls that the Ministry of Finance had confirmed plans by the Federal Government to sell some government-owned properties to fund the 2021 budget.

You may be interested

FG makes mother tongue compulsory in primary schools
News
News

FG makes mother tongue compulsory in primary schools

Webby - December 1, 2022

The Federal Executive Council (FEC) has approved the adoption of the mother tongue as a compulsory medium of instruction in…

FG blames state governors for rising poverty, hardship in Nigeria
News
News

FG blames state governors for rising poverty, hardship in Nigeria

Webby - December 1, 2022

THE Federal Government has blamed state governors for the high rate of poverty and economic hardship in the country.Minister of…

FEC okays compulsory teaching of mother tongue in primary schools
News
News

FEC okays compulsory teaching of mother tongue in primary schools

Webby - December 1, 2022

<!-- FEC Okays Compulsory Teaching Of Mother Tongue In Primary Schools – Independent Newspaper Nigeria HomeFeaturedFEC Okays Compulsory Teaching Of…

Leave a Comment

Your email address will not be published.