See Government’s Final Plan To Take Nigeria Out Of Recession
It is no longer news that Nigeria is battling to reclaim its economy from hard-biting recession – its first in 25 years.
The government has been implementing a number of measures to make this a reality.
But it appears they have failed to work.
After the visit of some IMF staff a fortnight ago revealed that so-called growth meant little to nothing to the economy, the government has had to go back to the drawing board to re-strategise.
On Wednesday, after the weekly federal executive council meeting, the government announced few other measures to get the economy back on track of growth.
First, there is a plan to refinance $3 billion worth of treasury bills denominated in naira with dollar borrowing to lower costs and improve its debt position.
This is according to the finance minister, Kemi Adeosun.
Adeosun said the government planned to refinance $3 billion worth of maturing naira-denominated short-term treasury bills with dollar borrowing of up to three years' maturity.
She said it was part of an attempt to restructure the debt portfolio into longer term maturities by borrowing more from overseas and less at home, which the minister said would also support private sector access to credit to boost the economy.
"As the economy recovers and grows we will be in a much better position to repay instead of just rolling over the debt," Adeosun said.
The government, she said, would issue dollar debt as $3 billion worth of naira treasury bills gradually mature. But she did not provide a time frame for this.
"We are not increasing our borrowings, we are simply restructuring -- instead of owing naira, we will be owing dollars," Adeosun said.
The government is also reviewing its GDP growth projections – perhaps to be on the safe side.
Budget minister Udoma Udo Udoma also told a news conference after the meeting that the government's economic growth projection for next year had been revised down to 3.5% from 4.8%.
Udoma said the government had approved "a slightly different" growth trajectory of 3.5% for next year, down from 4.8% it announced last week in its strategy paper.
He did not provide an explanation for why the growth forecast had been revised down.
Udoma said growth would top 4.5% by 2019 and 7% by 2020, adding that the government was projecting crude production of 2.3 million barrels per day for next year at a price of $45 a barrel.