Days after the Debt Management Office announced that Nigeria’s total debt at the end of June 2019 had increased by N3.32 trillion in twelve months to N25.7 trillion, Finance Minister Zainab Ahmed said the country was not absorbed by the debt crisis to many who speculated.
At a public hearing about the budget held by the National Assembly on October 23, Ahmed said the public debt was valued fairly. SHe said the country had income problems.
“Nigeria does not have a debt crisis”, she said.
“Our total borrowing today is just under 20% of our GDP while the multilateral institutions project for an economy our size to borrow up to 50-55% of our GDP.
“What we have is a revenue problem. Our revenue performance by half year is 58 per cent. So, we have designed this Strategic Revenue Growth Initiative early this year, which has three thematic areas.”
She added: “There is also the need for us to ensure that we have the right legal enablers and other enablers that will enhance revenue performance.
“Nigeria as a country must mobilise significant domestic resources to be able to make necessary investment in human capital as well as in physical infrastructure.”