“Nigeria will continue to borrow,” Adeosun says, two days after warning against debt

Kemi Adeosun, Minister for Finance [Photo credit: The BusinessPost]
Kemi Adeosun, Minister for Finance [Photo credit: The BusinessPost]

Two days after the finance minister, Kemi Adeosun, said the federal government must move away from debt in funding future budgets, she clarified her statement saying Nigeria has no choice but to continue to borrow in other to implement the Federal Government’s Economic Recovery and Growth Plan, ERGP.

Speaking at the quarterly presidential business forum in Abuja, Mrs. Adeosun said Nigeria needs to generate more money to fund its budget.

“We need to mobilise additional revenue to fund our budget,” she said.

“We have got to get our budget bigger and to do that we cannot borrow anymore. We simply have to generate more revenue, we have to plug the leakages, we have to improve tax collection so that we can manage our borrowing.”

However, in a statement signed by the Director of Information, Federal Ministry of Finance, Salisu Dambatta, on Thursday, Mrs. Adeosun said Nigeria will continue to borrow to fund its budget.

“Nigeria will continue to borrow. Nothing has changed,” her spokesperson quoted her as saying.

“The Economic Recovery and Growth Plan provides for an increase in spending over a three-year period, which is reflected in the 2017 budget.

“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,” she said.

Mrs. Adeosun said that in addition to borrowing, the government was working towards having a diversified revenue base to ensure that the country do not continue to overly rely on debt to fund the budget.

“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).

“Also, the recruitment of Community Tax Liaison Officers (CTLOS) is 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,” she said.

Mrs. Adeosun said that for now however, increased spending, funded by debt, would act as a stimulus for growth.

(NAN)


DOWNLOAD THE PREMIUM TIMES MOBILE APP

Now available on

  Premium Times Android mobile applicationPremium Times iOS mobile applicationPremium Times blackberry mobile applicationPremium Times windows mobile application

TEXT AD:DIABETES Is CURABLE! Don't Let It Threaten You! To NORMALIZE Your Blood Sugar In 21Days For Life, Click Here!!!.


All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.


  • Dawood

    Embarrassing. The ikonji-iwealas and looters in the government must have gotten to her.

  • Watch man

    Yes, it is not surprising! Their boss, the doctors of death (the Rothschild-supervised Bretton Woods Institutions), must have whipped her terribly. That is why she had to recant. No surprise at all! So unfortunate!

  • Delnerd

    This is height of inconsistency…yes/no no/yes? A minister for that matter?

  • Otile

    The devil is a lair. This_idiot is unreliable. Watch her flip flop.

  • Kofi Mensah

    Doublespeak at its peak!

  • Frank Bassey

    Speaking phone is not display of knowledge.

  • Dele Awogbeoba

    Did this lady just mention debt to GDP ratio as the basis for continued borrow? This is the language NOI used to justify irrational accumulation of debt. Well, be advised that the appropriate metric to look at is not debt to GDP but yearly revenue to yearly debt service level. I think it has now become clear that you either do not believe Nigeria should borrow more as your earlier statement stated or you are confused or you are cowed by the views of the govt that you disagree with. In the case of the first and third possibility, you should resign. In the case of the second possibility, you should be fired.

    • Intrepid

      She wore Incompetence all over her face right from the word go. Financial institutions wrote her off with their back hand. She is a small fish in a big pond.

      There’s Nigeria for you.

      • Ecnometrics

        @deleawogbeoba:disqus

        Debts help corruption become less obvious
        to sink Nigeria into a failed state. In specifics, Raji Fashola left a debt of 238
        billion Naira owed to foreign banks and creditors PLUS another 278.8 billion
        Naira owed to local contractors – totaling 512 billion Naira; according to the
        Debt Management Office. What further evidence do investigators need to draw
        that simple, commonsense conclusion of theft, if there is no single functioning
        school to show for these oodles of money, after Raji Fashola received a
        whopping 3.2 TRILLION Naira as gross revenues and blew it painting white
        elephants between 2007 and 2015?

        • 360°?????????

          @deleawogbeoba:disqus

          Here was a chance governor – Raji Fashola – who could not run the Lagos city BRT transport
          (which collapsed in just three years under his incompetent watch) and who also failed to run Lagos secondary schools to pass Wasc, but rather posted 80% FAILURE every year and thus ruining the future of Lagos state.

          Is that not the meaning of INCOMPETENCE to start with, besides roguery? Or, what else is a state governor to do, majorly, other than run a sensible school system and a state bus system in an
          orderly environment?

      • Dele Awogbeoba

        Shut up you low life bigot. She is implementing the same policy as NOI which you supported solely because she was igbo and which you are condemning Adeosun for because she is Yoruba.

        • Fernando Luis

          You are a disgrace to your family. So you don’t know when someone is deceiving you. Any way you are a brainwashed coward. Olodo

        • Fairgame

          You are lower than a low life bigot.

        • Netanyahu

          You still remember Okonji Iweala? Wonderful.

    • Fairgame

      NOI will always be so far ahead of you and your low level kind that you will eventually go mad. Face your kalamity Kemi and leave the star NOI out of your stupidity.

  • Hyena&jackal slayer

    APC madness!
    Alll-People-CONFUSION Party!!!

  • The Rt. or Lft. Hon NinjaK

    Story-Story!

  • Fernando Luis

    Incompetent bunch of clowns.

  • Fairgame

    14 million Nigeria chose the most incompetent and daft people to run Nigeria and abused the brightest and best. May suffering never depart from the lives of all those who brought the scourge called Buhari government into power.