We’ve no choice but to borrow $30bn — Adeosun



The Minister of Finance , Mrs. Kemi Adeosun , on Thursday said that the inability of the Federal Government to generate enough revenue to meet its obligations had left it with no other choice than to turn to international financial institutions for loans to finance critical infrastructure projects .


She said that with a huge monthly personnel expenditure of about N210bn , coupled with additional debt service burden of N120bn , making a total of N330bn every month , it had become difficult with the low receipts from oil to generate enough revenue to meet these obligations as well as fund capital projects .


The minister stated these in Abuja at the 14 th Daily Trust Dialogue, which had as its theme : ‘ Beyond recession : Towards a resilient economy ’ .


The Senate had on November 1 , 2016 unanimously rejected President Muhammadu Buhari’ s 2016 - 2018 external borrowing rolling plan through which the sum of $ 29 . 9 bn was requested . It asked the executive to provide further details on it .


The budget has a huge deficit of N2 . 36 tn (or 2 . 18 per cent of the country ’ s Gross Domestic Product ), a figure the President said would be financed through borrowing .


While a lot of people have faulted the borrowing plan , which seeks to borrow the sum of $ 29 . 9 bn from foreign sources , the Finance minister said the realities on ground had made it imperative for Nigeria to get the loan if it must survive the economic crisis .


She said , “Where are we today and what ’ s the problem ? This is my requirement every month : salaries , statutory transfers every month , I need N210bn every month . Debt , not the debt that we are planning to take , but the inherited debt; I need N120bn just to service it .

So, every month , I need N330bn
“Just to give you an idea of where we are today , last month ’ s FAAC allocation was N310bn . So, the Federal Government got about N140bn ; but I must cover N330bn a month before we can do a single capital project .


“So , when we start the argument, should we borrow , should we not ? The truth is that we have no choice . If you are waiting for the oil price to recover , the prognosis is that it ’ s not going to go back to $ 110 per barrel any time soon. ”


Adeosun added, “So , to get the economy growing , we have no choice but to look for low- cost funds and put that infrastructure in place, because it is the infrastructure that will unlock the economy .


“It is the infrastructure that will allow us to, rather than importing powdered milk , have the cows in Taraba State with huge potential. ”


The minister lamented that if the country had adopted the steps being taken now to reduce expenditure through efficiency in spending when oil price was $ 110 per barrel , Nigeria would not have slipped into recession .


She said apart from borrowing , part of the survival strategies of the government was to make sure that revenue generating agencies remitted their operating surpluses to the coffers of the government.


http://punchng.com/weve-no-choice-borrow-30bn-adeosun/

If the international organizations you want to borrow from are directionless and without vision to think out solutions for their challenges, where will the funds to borrow to you come from? With all the untapped resources in this country, we should be the ones lending financial helps to other countries but no, in the mist of our abundance we still lack and beg...When will we get it right?

The woman that can't give account on how 2bn+ they borrowed before was spent is talking about $30bn loan..

Apc is all about deceiving people to vote and ruling with hyped media propaganda. It is a fact, things are not just working right now. Wait, I heard the man at the helm of affairs is going on another leave/medical leave

@ $28 pb you complained...

@ $38 pb you complained...

@ $45 pb you complained...

@ $54 pb you complained...

@ $58 pb you complained...

by now you should realise that its not about the oil price or unrest in the ND, its your ability to effectively utilise what you have...

The choice we make has a ripple effect

Ok

We also have no choice than to remove this government by 2019.

Provided it's transparent and effective. But here cones the problem;
How do we source the loan and from whom?
What's the surety and conditions of the loan?
What's the lifespan of the loan?
And how do you pay back with the decline in price of our major resources?

Please they should not sell off our future and put us into further slavery.

So Buhari hasn't borrowed the money yet

... Where did they get money for Npower, 5000 stipends

borrowing the money is not a problem. but actually implementing the money to the projects and this project achieving the projected results is the main issue. if it failed to achieve its objectives .Nigeria will be in a situation worse than now. we have history of mismanagement and failed policies from successive governments. my advice is that we make use of our resources and gradually implement it to what we have. this govt has tried in some aspects. I don't really expect they will achieve all in 4 years.

Tor... A duru owo un

I support the 30b loan. And the massive development in the north east region.

The other parts of Nigeria can lick backyard!


I don't know the day erosion we enter aso rock and bring out that slender lizard man out