Finance minster Mrs Kemi Adeosun
Finance minster Mrs Kemi Adeosun

MINISTER of Finance Mrs Kemi Adeosun
has reiterated that nothing has changed on
Nigeria’s debt strategy despite comment
credited to her on the nation’s huge debt
profile, “Nigeria cannot borrow anymore”.
Adeosun’s comments had raised
questions about how Nigeria would fund
its budget for the year and about planned
foreign loans of $2 billion from lenders like
the World Bank.
However a statement posted yesterday
said that the country cannot do without
borrowing especially considering that
the Economic Recovery and Growth Plan
provides for an increase in spending over a
three-year period, which is reflected in the
2017 budget.
“About Nigeria’s debt strategy and
ability to borrow, it is important to clarify
the position of the Minister and the Federal
Government.
Nigeria will continue to borrow.” She
explained that the Federal Government
will continue to borrow to fund the budget
for 2017.
She also stated that in 2017, the
government is committed to spending
N7.44 trillion, with a projected fiscal deficit
of N2.356 trillion, which will be funded by a
combination of domestic and international
borrowing.
“Nigeria’s debt to GDP ratio is low when
compared to our contemporaries in Africa,
and across most of the developed world. We
have headroom to borrow and are doing so
aggressively in the short to medium term in
order to address our infrastructure deficit
and to stimulate growth.”
“At the same time, it is vital that Nigeria
diversifies its revenue base and builds its
revenue profile, as is projected in the ERGP,
to ensure that we do not continue to overly
rely on debt to fund our budget spending
over the long term. To build a sustainable
economy we must replace the debt that we
are incurring in the short to medium term,
with strong revenue sources.”
“That is why the Ministry of Finance is
focused on expanding our tax base, which
we are doing with a range of initiatives
which include the Voluntary Asset and
Income Declaration Scheme (VAIDS)
and recruitment of Community Tax
Liaison Officers (CTLOS) to improve tax
compliance in the long-term, and we are
heavily focused on making government
spending more productive and efficient.”
“Nigeria cannot rely on debt indefinitely.
We must be focused on a future where we
can earn enough internal revenue to spend
on the projects that will grow our economy.
In the short term, though, increased
spending, funded by debt, will act as the
stimulus we need to grow.”MINISTER of Finance Mrs Kemi Adeosun
has reiterated that nothing has changed on
Nigeria’s debt strategy despite comment
credited to her on the nation’s huge debt
profile, “Nigeria cannot borrow anymore”.
Adeosun’s comments had raised
questions about how Nigeria would fund
its budget for the year and about planned
foreign loans of $2 billion from lenders like
the World Bank.
However a statement posted yesterday
said that the country cannot do without
borrowing especially considering that
the Economic Recovery and Growth Plan
provides for an increase in spending over a
three-year period, which is reflected in the
2017 budget.
“About Nigeria’s debt strategy and
ability to borrow, it is important to clarify
the position of the Minister and the Federal
Government.
Nigeria will continue to borrow.” She
explained that the Federal Government
will continue to borrow to fund the budget
for 2017.
She also stated that in 2017, the
government is committed to spending
N7.44 trillion, with a projected fiscal deficit
of N2.356 trillion, which will be funded by a
combination of domestic and international
borrowing.
“Nigeria’s debt to GDP ratio is low when
compared to our contemporaries in Africa,
and across most of the developed world. We
have headroom to borrow and are doing so
aggressively in the short to medium term in
order to address our infrastructure deficit
and to stimulate growth.”
“At the same time, it is vital that Nigeria
diversifies its revenue base and builds its
revenue profile, as is projected in the ERGP,
to ensure that we do not continue to overly
rely on debt to fund our budget spending
over the long term. To build a sustainable
economy we must replace the debt that we
are incurring in the short to medium term,
with strong revenue sources.”
“That is why the Ministry of Finance is
focused on expanding our tax base, which
we are doing with a range of initiatives
which include the Voluntary Asset and
Income Declaration Scheme (VAIDS)
and recruitment of Community Tax
Liaison Officers (CTLOS) to improve tax
compliance in the long-term, and we are
heavily focused on making government
spending more productive and efficient.”
“Nigeria cannot rely on debt indefinitely.
We must be focused on a future where we
can earn enough internal revenue to spend
on the projects that will grow our economy.
In the short term, though, increased
spending, funded by debt, will act as the
stimulus we need to grow.”


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