Why Nigeria Should Not Worry About 21.7 Trillion Naira Debt – Adeosun
If you are among those fretting that Nigeria has accumulated so much debt, Finance Minister, Kemi Adeosun wants you to breathe easy.
According to data released on Wednesday last week by the Debt Management Office, Nigeria’s external debt rose to 18.91 billion dollars by December 2017.
Domestic debt also rose to 15.937 trillion naira, bringing the total debt stock of the country to 21.725 trillion naira.
But Adeosun in an interview with some journalists in Abuja on Monday said Nigerians should not worry about the debt since “the country has enough capacity to repay its debt obligations”.
She said the government is not worried about the country’s rising debt as the debt to Gross Domestic Product ratio is still low compared to other countries.
The minister stated that unlike previous government that borrowed to pay salaries, the focus of the administration of President Muhammadu Buhari is to invest massively in infrastructure.
She said as of the time that Buhari took over the mantle of leadership in 2015, oil prices were very low and as such, the government was constrained in allocating funds for capital projects without having to borrow.
According to her, with over 2.5 trillion naira pumped into infrastructure in the last three years, the country will start seeing the benefits of the borrowed funds.
Also Watch: Inside Makoko: Beauty And The Beast