We’re Mindful Of Our Borrowings, Despite Rising Debts -FG

The Minister of Finance, Zainab Ahmed, says while government borrows to deliver on its promises, it is also mindful of rising debt burden, which eats up about 25 per cent of the country’s annual earnings.
Ahmed said this in an interview with newsmen on the sidelines of the just concluded IMF/World Bank meetings, which took place in Washington DC from April 9 to 14.
Nigeria currently has an external debt stock of about $24.27bn as at December 31, 2018.
Euro bonds, loans from World Bank Group, China and Africa Development Bank Group make up over 80 per cent of the country’s debt stock.
Ahmed insisted that in spite of warnings by the IMF and World Bank, the country was not in any way near a debt crisis.
“The World Bank and IMF are cautioning us on the rate at which we are borrowing.
“They are also cautioning us on the need to build fiscal buffers because the global economy is going to be facing some risks and we agree with that.
“We are very mindful of the level of our borrowings. Our borrowing is very much within fiscal limits right now.
“What we are doing is to increase our revenue generating capacity to make it easier for us to meet our debt obligations and our routine as well as capital expenditure,’’ she said.
Our Correspondent raised concerns about whether the Chinese loans to finance the Idu-Kaduna, Lagos-Ibadan and Abuja light rail projects, the expansion of four airport terminals and some hydroelectric projects across the country were healthy for the nation’s economy.
The Correspondent also raised concerns about whether the conditions for the loans were favourable to the overall interest of Nigeria.
Ahmed responded saying: “To borrow, we go through several processes of assessments as well as negotiations.