The World Bank has disagreed with the Minister of Finance, Mrs. Kemi Adeosun, on the need for the Federal Government to borrow more in order to develop the nation’s infrastructure and stimulate the economy.
The World Bank spoke through its Senior Economist, Gloria Joseph-Raji, on Monday in Abuja, saying that the cost of borrowing or paying interest on Nigeria’s debt was not sustainable as revenues to make such payment had dried up.
Adeosun said on Sunday at a press briefing rounding off the World Bank/International Monetary Fund annual meeting in Washington DC, United States that Nigerians would have to tolerate more borrowings in the short term for the government to deliver critical infrastructure.
But Joseph-Raji said that dwindling revenues had raised a concern both at the Federal Government and the World Bank on sustainability of Nigeria’s borrowings as debt-to-revenue ratio had increased by 25 per cent within a period of one year.
The World Bank expert said she was concerned about the sustainability of the country’s debt, especially the huge domestic borrowing with high interest rate, which prompted the Debt Management Office to come up with a strategy to rebalance the country’s debt portfolio.
Also speaking on the issue, the Head of Abuja office of Social Action, a Non-Governmental Organisation active in debt relief advocacy, Mrs. Vivian Bellonwu-Okafor, said the government needed to think about better ways of managing the economy. She said borrowing $3bn from abroad to refinance local debts was replacing one evil with another evil.
From Punchng
Instead of borrowing, why don't Nigeria government cut down on the huge salaries and allowances of the Senates and house of assembly. The government can start from there; reducing cost of governance. Then our President receives his medical care at home than travelling and docking plane in foreign land.
ReplyDeleteThere are a lot our greedy leaders can do to save cost than borrowing.
Thank you,you spoke my mind
DeleteA senator in Nigeria earns more than united states president
olodo woman with a dullard presido
ReplyDeleteOlodo woman ke? Far from it. Borrowing in itself is not a wrong choice for the nation at this time if the said loan all be solely for capital projects. Reduce the cost of recurrent expenditure, use the overhead from that to service the loan. Shikena.
DeleteThank you single dad. Borrowing is a good choice for Nigeria but a bad choice fir the lenders. Pretty much world Bank is saying we are bad debtors. There's no reason to think we can pay up
DeleteAnyway, we know Buhari wants to use the money for reelection. He give the order to adeosun, they will then launder it via NE development and then the money would disappear as always...billions and counting. Awon new sleek thieves. By the time this is all said and done Buhari' damage will be nothing compared to dezeni. Adeosun is amosun and buharis stooge. Amosun is like Jnr. Either to Buhari. They are all in this together.
ReplyDeleteLet them continue to borrow for their generation.......clueless mofos in power
ReplyDelete