Loading...

Author Topic: We cannot borrow anymore -Nigeria Finance minister cries out  (Read 216 times)

0 Members and 1 Guest are viewing this topic.

Offline lindaikeji

  • Global Moderator
  • Jr. Member
  • *****
  • Posts: 74
    • View Profile


Nigeria must not borrow more to fund its budget and should instead raise money it needs by other means, the country’s finance minister said on Tuesday, calling into question planned foreign loans of $2 billion from lenders like the World Bank.


Africa’s largest economy is in its first recession in 25 years, and had planned to borrow extensively from overseas to fund a record budget aimed at helping the country spend its way out of its economic doldrums.

But plans for lenders like the World Bank and African Development Bank to loan at least $2 billion to Nigeria have been stalled for over a year as international organisations’ frustrations mounted at the country’s refusal to impose key fiscal reforms such as allowing its foreign exchange rate to float freely.

Finance Minister Kemi Adeosun’s comments, made while speaking at a business forum in the capital of Abuja, suggest that Nigeria will no longer seek such loans, or an additional $1.5 billion it had planned to raise from international debt markets. “We cannot borrow anymore, we just have to generate funds domestically enough to fund our budget.

Mobilize revenue to fund the necessary budget increase,” she said. In May, the head of Nigeria’s budget office said the country has a shortfall of $7.5 billion for its 2017 budget expenditure, and said that would be addressed with $3.5 billion from the aforementioned loans and debt.

The government also planned to raise $4 billion from the local debt market, he said at the time. Nigeria’s presidency signed off on its record 7.44 trillion naira ($24.39 billion) budget for 2017 in June, after numerous delays. The plan projects a deficit of 2.21 trillion naira, implying a deficit equivalent to 2.18 percent of Nigerian gross domestic product. ($1 = 305.0000 naira)



 

Nigeria Single Treasury Acct TSA boost revenue collections as FAAC shares N511bn

Started by mastercode

Replies: 0
Views: 296
Last post August 30, 2015, 04:07:58 PM
by mastercode
Nigeria-South African country?s media confirms legitimacy $9.3M of arms deal

Started by mastercode

Replies: 0
Views: 305
Last post October 07, 2014, 11:34:33 AM
by mastercode
Tony Elumelu launches Empowerment Fund to revitalize Nigeria distressed areas

Started by admin

Replies: 0
Views: 415
Last post October 17, 2014, 01:11:34 PM
by admin
Fuel scarcity - okonjo iweala accused Oil marketers of holding Nigeria to ransom

Started by mastercode

Replies: 0
Views: 545
Last post May 04, 2015, 09:43:56 AM
by mastercode
IRAN - US Deal - Nigeria May Lose N333 billion in crude oil revenue By Year End

Started by mastercode

Replies: 0
Views: 240
Last post July 21, 2015, 01:50:49 PM
by mastercode
President Buhari Tells NNPC New Boss - Recover all Stolen Nigeria Oil Money

Started by mastercode

Replies: 0
Views: 133
Last post August 05, 2015, 05:01:21 PM
by mastercode
President Buhari hails British support for repatriation of Nigeria?s stolen fund

Started by mastercode

Replies: 0
Views: 193
Last post October 07, 2015, 08:26:29 PM
by mastercode
APC React to PDP call for buhari's Resignation amid Nigeria 2016 missing Budget

Started by newspostng

Replies: 0
Views: 188
Last post January 15, 2016, 10:27:53 AM
by newspostng
FirstBank sustains support for Nigeria Association of the Blind on White Cane Da

Started by admin

Replies: 0
Views: 225
Last post October 15, 2014, 07:07:30 PM
by admin
ARMS DEAL: Finally, South Africa returns seized $15m to Nigeria

Started by mastercode

Replies: 0
Views: 242
Last post October 25, 2014, 09:41:20 PM
by mastercode