Why We Need More External Debt – FG

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Why We Need More External Debt – FG

The Federal Government has insisted that failure to obtain external debt as contained in the 2018 Appropriation Act will slow down the implementation of the capital component of the budget.

This is even as the Debt Management Office (DMO) put Nigeria’s debt profile at N22.38tn as of June 30, 2018.

Speaking exclusively to Daily Trust, the Minister of State for Budget and National Planning, Zainab Shamsuna Ahmed, said the external debt is necessary because of the huge deficit in the 2018 budget.

“The borrowing is one component of the funding, which is the major one for now and if we are not able to realise the two borrowing as projected in the budget, it will affect the performance of the budget,” she said.

The minister however said “that doesn’t mean that the budget will not be implemented because we have national revenue too.”

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