Why Nigerians Should Not Be Worried About Govt Borrowing – Adeosun
As you may know, there have been expression of fears from several quarters that the federal government is borrowing too much.
In fact, some media reports last week alleged that the government has borrowed more than it has the capacity to repay.
Another report showed that the Central Bank of Nigeria is just printing money for the government to offset some of its bills.
But the Minister of Finance, Kemi Adeosun has come out to assuage such fears.
Adeosun insists that the government is not over-borrowing.
She said “the thought of saddling future generations with unserviceable debts is not part of the President Muhammadu Buhari-led administration’s agenda”.
Also Read: Nigeria Is Owing 19.63 Trillion Naira - DMO
Adeosun’s position was contained in a story she wrote, entitled, ‘The debt debate: Deconstructing the debt story’, in which she explained the debt history, the short-term strategy and the medium to long-term outlook for the economy.
She blamed government’s resort to borrowing to the fall in crude oil prices which the government inherited in 2015.
She therefore explained that “to deliver a fundamental structural change to the economy that would reduce the country’s exposure to crude oil, an expansionary fiscal policy was adopted with an enlarged budget, which would be funded in the short-term by borrowing”.
"As the economy recovers and returns to growth, borrowings will be systematically replaced by revenue,” the minister said, explaining government’s plan".
We hope Kemi is right and the allegations are wrong... or else!
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