Despite the recent announcement of the Debt Management Office that Nigeria’s total public debt rose by N3.32trn in 12 months to N25.7trn as at the end of June 2019, Finance Minister Zainab Ahmed has disclosed that the country is not enmeshed in debt crisis as speculated by many.
She made this known at a public hearing on the budget organized by the National Assembly on Wednesday, October 23. Ahmed said the country’s debt is within a reasonable limit. She stated that what the country has is a revenue problem.
“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.