Finance Minister allays fear over govt borrowings, says N25.7tr debt not worrisome

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.”