A day after she allegedly said Nigeria has exhausted her borrowing space, Minister of Finance, Mrs. Kemi Adeosun, recanted yesterday, saying that the country will continue to borrow.
Adeosun in a statement issued on her behalf by Mallam Salisu Inna Dambatta, a Director of Information in the ministry, insisted that Nigeria will continue to borrow saying nothing has changed.
“The Economic Recovery and Growth Plan provides for an increase in spending over a three-year period, which is reflected in the 2017 budget. In 2017, the government is committed to spending N7.44 trillion, with a projected fiscal deficit of N2.356 trillion, which will be funded by a combination of domestic and international borrowing”, statement by the ministry clarified.
On Wednesday, the media was awash with news credited to Minister of Finance to effect that, Nigeria must not borrow more to fund its budget but would raise money through other means.
Adeosun reportedly made the comment while speaking at a business forum in Abuja on Tuesday. Her statement inferred that the country will no longer seek such loans or an additional $1.5 billion it had planned to raise from international debt markets.
Disputing the claim credited to her, the statement from her ministry said: “Following recent reports on comments by the Minister of Finance about Nigeria’s debt strategy and ability to borrow, it is important to clarify the position of the Minister and the Federal Government”, adding that, Nigeria’s debt to GDP ratio is low when compared to our contemporaries in Africa, and across most of the developed world.