Bismillahi..
The federal government has informed Nigerians that it will result to borrowing to fund the 2016 budget due to the declining price of oil in the international market.
Nigeria is largely dependent on proceeds from oil to fund the budget but the resurgence of militancy in the oil rich Niger-Delta region has reduced oil production.
Minister of finance, Mrs Kemi Adeosun told a packed crowd of Nigerians at the Shehu Musa Yar’adua Center in the country’s capital, Abuja today, August 9, that the government has no choice but to borrow.
Mrs Kemi Adeosun addressing the crowd at the Shehu Musa Yar’adua center earlier today
”We have to borrow to implement on the projects we are embarking on,we cannot wait for oil to improve,” Adeosun submitted.
The event tagged Town Hall Meeting/Policy Dialogue for Good Governance was organised by the Alumni Association of the National Institute (AANI).
Adeosun further painted a picture of gloom saying that the government cannot afford to be wasteful in these times.
He words: ”We cannot afford to waste money. The money we have is limited hence we must spend wisely. We must change because the direction we are heading is not sustainable.”
Adeosun’s revelation is coming on a day the Nigerian naira traded at an all-time low of 350 to the dollar today, August 9 in a single interbank market trade of $100,000.
Two weeks ago, Adeosun told the Nigerian Senate that Nigeria is ” technically in recession ” after months of insisting that the economy was doing well.
The Central Bank of Nigeria (CBN) governor, Godwin
Emefiele set the ball rolling on Wednesday, July 20 during a presentation to the Senate.
A seemingly sober Emiefiele told the senators that the country’s economy has been characterised by external shocks, sharp decline in commodity prices and geo-political tensions along important global trading routes among others.
Meanwhile, renowned economist and businessman, Mr Atedo Peterside has warned that the recession currently experienced in Nigeria will last for a long time.
In a tweet via his Twitter handle earlier today, the President & Founder of Anap Foundation said business confidence is low and investors are holding back on investing in Africa’s most populated country.
Yesterday, August 8, the media was awash with stories that the Nigerian government was in the process of appointing two lead managers and a financial adviser to organize the issuance of $1 billion of Eurobonds this year.
According to the Debt Management Office (DMO), the sale is the first tranche of a $4.5 billion Nigeria Global Medium-Term Notes Issuance Programme that runs through 2018.
In a related development, fourteen (14) airlines have withdrawn their services from Nigeria due to low patronage and the bad economy being experienced in the country.
The airlines are among the 50 that operated the Nigerian routes some months ago. Some of those listed are Spanish-owned Iberia airlines, United Airlines and Air Gambia among others.
Title : FG will borrow to fund 2016 budget - Adeosun
Description : Bismillahi.. The federal government has informed Nigerians that it will result to borrowing to fund the 2016 budget due to the declining pr...
