The Minister of Finance, Kemi Adeosun, has raised an alarm, over the shocking move by the All Progressives Congress-led, APC, government, to embark on massive external borrowing, to fund the 2017 budget.
According to the Minister, such massive external borrowing to fund the budget, would do the county no good.
Adeosun, who raised the alarm while speaking at a Business Forum, in Abuja, on Tuesday, stated that the country 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.
Recall, that Nigeria is in the middle if 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.
The Acting President, Yemi Osinbajo, signed off on its record the N7.44 trillion ($24.39 billion) budget for 2017, in June.
The plan projects a deficit of N2.21 trillion, implying a deficit equivalent to 2.18% of Nigeria’s Gross Domestic Product, GDP.
