FG not happy to exceed borrowing limit – Minister

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The Federal government says it is concerned that it had exceeded the borrowing threshold in the Fiscal Responsibility Act.

The Minister of Finance of Budget and National Planning, Zainab Ahmed, disclosed this at the ongoing 27th National Economic Summit in Abuja on Monday.

The minister who explained that the borrowed funds will be used to build critical infrastructure added that plans are underway to scale down borrowing in coming years

The minister said, “We tried to borrow more than planned because of the COVID-19. We are very uncomfortable at the fact that we have borrowed at the quantum exceeding the threshold that is outlined by the Fiscal Responsibility Act.

“But we have made sure that we have planned over the next few years that the borrowing is scaled down, and also that we are able to borrow at levels that we can actually repay the debt service obligation.

“So, our borrowing is not just being done blindly; it is guided by laws. It is guided by a medium-term debt plan; we have a board at the Debt Management Office that is chaired by his Excellency the Vice President.

“So, we actually plan these things. I feel discomfort from the polity that we are borrowing too much, we are going to leave debts that the future generation has to take part in.”

“I think if the conversation can move towards ‘What are they doing with the money that they are borrowing?’ We do need to build this critical infrastructure now for us to have a chance to attain the minimum seven per cent growth that his Excellency the President has set.”

According to the Debt Management Office, DMO, Nigeria’s public debt profile has recently reached an all time high of 35 Trillion Naira.

 




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