Finance Minister Says Planned Borrowing Is For Capital Investment

Channels Tv

The Minister of Finance, Mrs. Kemi Adeosun says Nigeria’s 2016 budget will help the Federal Government to build a resilient economy.

She made this known in an interview with Channels Television at the World Economic Forum in Davos, Switzerland.

The Finance Minister noted that Nigeria’s past borrowings were not well utilized.

She added that the country has no other choice than to borrow for capital investments through its medium term expenditure framework.

“If you look at the budget it is structured to invest in capital, we are borrowing to invest in capital.

“In 2008, we spent from our reserves and increased our borrowings by 3% of the GDP

“You either build up your cash reserves like the Saudis or build the economy like Dubai did, but we don’t have either of any, we don’t have the cash and the infrastructure to drive the economy.

The Finance Minister further stated that the oil price has given “us a unique opportunity to do the right thing at 31 Dollars per barrel what we failed to do when it was 114 per barrel”.

She added that the government has to ensure that the borrowed money stimulates the economy and get things moving again.