President Muhammadu Buhari has justified the frequent borrowings by his administration, saying the nation’s debt profile continues to be inside a sustainable degree.
He mentioned this whereas presenting the 2022 price range estimate earlier than a joint session of the National Assembly on Thursday.
He mentioned although, Nigerians are proper to be anxious in regards to the authorities’s borrowings and money owed however argued that such borrowings have been wanted as they helped in bringing the nation out of recession and boosting the financial system.
The president mentioned the goal of his administration is to develop the nation’s Gross Domestic Product (GDP) from the present 8 per cent to fifteen per cent by 2025.
He mentioned, “We plan to finance the deficit mainly by new borrowings totalling N5.01trillion, N90.73billion from Privatisation Proceeds and N1.16trillion drawdowns on loans secured for specific development projects.
“Some have expressed concern over our resort to borrowing to finance our fiscal gaps. They are right to be concerned. However, we believe that the debt level of the Federal Government is still within sustainable limits. Borrowings are to specific strategic projects and can be verified publicly.
“As you are aware, we have witnessed two economic recessions within the period of this Administration. In both cases, we had to spend our way out of recession, which necessitated a resort to growing the public debt. It is unlikely that our recovery from each of the two recessions would have grown as fast without the sustained government expenditure funded by debt.”
Buhari mentioned the 2022 price range is designed to construct on the achievements recorded in earlier budgets and to actualize the 2021-2025 growth plan.