Against the backdrop of the nation’s rising debt profile, the Minister of Finance, Mrs. Kemi Adeosun, has said the Federal Government must not borrow more to fund its budget.
Adeosun said the government should instead raise the money needed by other means, calling into question planned foreign loans of $2bn from lenders like the World Bank, according to Reuters.
The minister’s comments, made at a business forum in Abuja, suggested that the government would no longer seek such loans, or an additional $1.5bn it had planned to raise from international debt markets.
The government had planned to borrow extensively from overseas to fund a record budget aimed at helping the country spend its way out of its first recession in 25 years.
But plans for lenders like the World Bank and the African Development Bank to loan at least $2bn to Nigeria have been stalled for over a year as international organisations’ frustrations mounted at the country’s refusal to impose key fiscal reforms such as allowing its foreign exchange rate to float freely.topics from