Nigerian Minister of Finance and National Planning Zainab Ahmed assures the country currently is not in debt crisis and debt profile is within a reasonable limit.
Her comment at the 4th National Budget hearing on 2020 budget came amid speculations that Nigeria is slipping into a debt crisis gradually.
The country has plans of spending N2.4 trillion next year to service of local as well as foreign debts. Earlier this month a related Appropriation Bill was presented by President Muhammadu Buhari.
By March 2019 the total debt of the country was at N24.9 trillion and Buhari believes the 2020 budget would strengthen macroeconomic environment, critical infrastructure and human capital development of Nigeria apart from enhancing administration’s social investment programme.
Zainab Ahmed said the debt profile is within a limit at less than 20 percent of Nigeria’s GDP.
However, she also mentioned the 2020 budget deficit will come mainly by borrowing and it is the call to increase revenue profile.
She added sale of government’s assets would finance the 2020 budget deficit and provision of privatization is on the card as a support to it.
The minister said, “The overall budget deficit of N2.7 trillion represents 1.52 percent of the GDP of the country. And the stipulated debt to GDP ratio is in the threshold of the 3 percent that is provided for in the Fiscal Responsibility Act of 2007.”
President of the Senate, Ahmad Lawan, reminded the lawmakers about the target and to place the final budget before Christmas.
