Finance Minister allays fear over govt borrowings, says N25.7tr debt not worrisome
Written by COMFORT 95.1FM on October 24, 2019
Minister of Finance, Budget and National Planning, Zainab Ahmed, says fears being expressed over Nigeria’s debt portfolio were not necessary.
Ahmed, who spoke yesterday at the National Assembly hearing on the ten point three three trillion naira 2020 Budget said that Nigeria does not have a debt crisis because they country’s total borrowing rate is just under fifty per cent of Gross Domestic Product .
According to the minister, debt portfolio should not be a thing to worry about because despite the current foreign and domestic debt stock, the multilateral institutions project for a country to borrow from fifty to fifty five per cent of the Gross Domestic Product .
The minister’s position came on the heels of a report by the Debt Management Office which showed that the total public debt portfolio from Nigeria’s domestic and external borrowings stood at twenty five point seven trillion naira as at June 30, 2019.
The minister however, submitted that Nigeria has s a revenue problem as revenue performance by half year is fifty eight per cent which resulted in the design of a Strategic Revenue Growth Initiative early this year, which has three thematic areas.”