We Have Weak Infrastructure So, Nigeria Can’t Stop Borrowing – Ahmed, Finance Minister ~ Matters Arising
Amid developing worries over Nigeria’s debt profile, the Minister of Finance, Budget and Planning, Mrs Zainab Ahmed, has stated the twin actuality of COVID-19 pandemic and the drop in the charge of oil in the global market has made it inevitable for Nigeria to preserve borrowing from external bodies.
She noted that earlier than the global health and economic challenges, Nigeria had been grappling with low revenue, noting that the crises had put the country in a tough situation, which had made it challenging for the government to meet some of its obligations Matters Arising learnt
Matters Arising gathered that, As of March, the Vice Chairman, Senate Committee on Local and Foreign Debts, Senator Muhammad Enagi, stated the country’s whole debt would have risen to about N33tn after the Senate accredited the President’s request to take another $22.7bn overseas loan.
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But, Ahmed said, “We’ve had to grapple with low revenue, even earlier than the pandemic. We had excessive debt, susceptible infrastructure base, low human capital and low income that is generally established on the foreign exchange earned from oil. So, there are many matters we have cherished to do that we can’t do.
“Due to the global economic slowdown and the revenue issues, what we are looking ahead to is a GDP that would contract, in the satisfactory case scenario, via about 4.4 per cent and in the worst case scenario, it ought to be about eight per cent or more.
“We are in a very hard state of affairs however we are making an attempt to control that due to the fact if nothing is done, up to about 21 million jobs should additionally be affected through the have an impact on of the pandemic. So, with all these statistics, we can’t over emphasize the significance of elevating revenue.”