Revenue is Nigeria’s problem, not debt – Finance Minister
NEWS DIGEST – The Minister of Finance, Budget and National Planning, Dr. Zainab Ahmed, says lack of adequate revenue to finance both human and capital infrastructure should be the major worry of Nigeria, not the current debt it owes.
Ahmed made the remarks at the Public presentation and Breakdown of the Highlights of the 2022 Appropriation Bill to justify the current level of the federal government borrowing to finance the deficit of the budget.
She stated that with the federal government expected to spend N16 trillion in the proposed 2022 Budget, its expenses are minute to the combined over N100 trillion spent on the Nigerian economy.
She said at 21.6 percent borrowing for the 2022 Budget, Nigeria needs 50 percent of its current GDP to be able to have infrastructural development and growth that would translate into meaningful economic growth.
“What we have is a revenue problem and we are working on it to be able to fully fund the operations of government as well as be able to service our debt obligations.”
“Borrowings are essential for us to be able to continue to deploy necessary capital expenditures as well as human development.”
She added that the federal government has to borrow to spend more to invest in infrastructure as it would lead to more job creation, spending and taxes.