x

Nigeria Would Still be in Recession If not for Borrowing – Finance Minister

The Minister of Finance, Budget and National Planning, Zainab Ahmed has again defended recent borrowings by the Federal Government, insisting they were instrumental to the country’s exit from recessions.

She said this on Friday during the Public Presentation and Breakdown of the 2022 Appropriation Bill.

“Having witnessed two consecutive recessions, we have had to spend our way out of the recession which contributed significantly to the growth of our public debts,” the minister stated in Abuja, one day after President Muhammadu Buhari presented the Appropriation Bill to the National Assembly.

“It is unlikely that our recovery from these recessions would have been as fast without the sustained government expenditure funded partly by debt.”

Before now, the minister had said Nigeria will fund its 2022 budget deficit, pegged at N6.258 trillion, through fresh borrowings.

The move was greeted with controversy across the country. Critics and members of the opposition said the development, as well as other borrowings by the Federal Government, call for concern.

“Our party holds it as an act of wickedness that individuals who know that they will be leaving office in less than two years will be accumulating debts instead of seeking ways to reduce the liability they have brought upon our nation,” the Peoples Democratic Party (PDP) said following Buhari’s request for approval to borrow $4 billion and €710 million to fund the deficit in the 2021 budget.

Technically At War

Nigeria’s Minister of Finance, Budget, and National Planning, Zainab Ahmed the borrowings are within “sustainable limits.”

But Zainab has explained that borrowings have helped the government in providing infrastructure to boost the economy.

“Borrowings are essential to enable us to deploy necessary capital expenditure and invest in human capital development,” she maintained.

According to her, with the country’s rising levels of insecurity, the government had to resort to borrowing.

“To compound matters, the country has technically been at war, with the pervasive security challenges across the nation,” the minister added.

“This has necessitated massive expenditures on security equipment and operations, contributing to the fiscal deficit; Defence and Security sector accounts for 22% of the 2022 budget!”

She further allayed fears over Nigeria’s debts, insisting the “debt level of the Federal Government is still within sustainable limits”.

Hot this week

Editors Urge Government To Create Safe, Enabling Environment For Journalists

· Ask security agents to find missing Vanguard journalist As...

EXCLUSIVE: Buhari orders probe of Isa Funtua, AMCON over keystone and Etisalat

Following the controversy generated by the leading opposition party,...

6 Signs your boyfriend thinks you are ugly -Take note of No. 2

They say there are three kinds of people; the...

2023: South-East, Middle Belt Forum Endorses Peter Obi

The South-East and Middle Belt Forum has endorsed the...

Ibom Air’s Essienette Elected 1st Chairman of NIMN Uyo Chapter

By Ogenyi Ogenyi, Uyo Mrs. Aniekan Essienette, FNIMN, Group Manager,...

JUST IN: CDCFIB Shifts Recruitment Portal Opening to July 14

The Civil Defence, Correctional, Fire and Immigration Services Board...

JUST IN: Tinubu to Sign Four Landmark Tax Reform Bills Into Law Thursday

President Bola Tinubu will on Thursday, June 26, sign...

BREAKING: 11 PDP NWC Members Reject Anyanwu’s Return as National Secretary

Crisis within the Peoples Democratic Party (PDP) has deepened,...

NCoS, NAS PC Partner to Rehabilitate Inmates, Curb Crime in Bayelsa

By Amgbare Ekaunkumo, Yenagoa The Nigerian Correctional Service (NCoS), Bayelsa...

Supreme Court Dismisses Appeal in Ogwashi-Uku Royal Dispute

By Anne Azuka The Supreme Court of Nigeria, sitting in...

Delta Govt Applauds Asaba NUJ Chapel for Solar Power Project

By Anne Azuka The Delta State Government has commended the...

Top 3 Insurance Companies Driving Digital Innovation in Nigeria (2025)

For years, insurance in Nigeria was viewed with skepticism—often...
spot_img

Related Articles

Popular Categories

spot_imgspot_img