News, Uncategorized

WHY OUR DEBT PROFILE IS RISING – FED GOVT

Nigeria Finance, Budget and National Planning Minister Mrs. Zainab Ahmed has explained the motive behind Federal Government acquisition of loans.

The minister said the loans would aid the funding of projects across the country.



DCO Global News
Published on November 12, 2021
By Odoh Dominic Chukwuemeka


Her explanation came on the heels of criticisms that the government was borrowing too much.


The debt stock is set to hit N52.6 trillion when the government harvests all the loans already approved by the National Assembly and the debts written against the government by its creditors, including the Central Bank of Nigeria (CBN).

The President Muhammadu administration got the latest nod on Wednesday to take more loans with the Senate granting approval to $16 billion and one billion euro loan request as well as $125 million grant.


Speaking on Channels television, the Finance minister said she justified the government’s attraction to the loans because of their concessionary nature.

She stated that the juicy loans come with Interest Rates of 2.5 to three per cent per annum; 20 to 30 years repayment tenor and Grace Period (Moratorium) of Seven years.


These concessions the minister said allows the federal government to execute infrastructure projects across the country.


Asked if the government will toll some of these roads in order to recoup investments to pay back the loans, Mrs. Ahmed noted that plans are underway to toll some roads which will come with the added benefit of smooth and fast transportation between locations which in turn will accelerate business growth within and among states.

Already, bids are being received for 14 major roads that will be tolled. According to the minister, “Government does not expect immediate financial returns from infrastructure completed with loans”.

She attributed the current high price of food stuff to the deplorable state of many roads in the country which in turn have led to high cost of transportation.


Mrs. Ahmed also revealed that the government is under “a lot of pressure to remove subsidy”.

The prevailing subsidy arrangement, according to her, favours the rich and those with two cars or more that can afford to buy petrol when the subsidy is removed.

To cushion the effect of the subsidy removal, the minister said the government was considering palliatives for “a large number of the population”.

She listed some of the palliatives as provision of an efficient, effective and affordable mass transportation system, and a social welfare package that will allow the government to reach out to the needy.

However, the government is handicapped in reaching out to the needy because of the poor national identity database.

The minister also stated that the government has been spending from recovered loot.

She said recovered loots are domiciled in a Special Recovery Account and based on the advice of the Attorney-General of the Federation and Minister of Justice as well as from financial crimes agencies, “unencumbered” funds are withdrawn from the special account and transferred to the Consolidated Revenue Fund from where the money is spent of overhead expenses.

On the face-off between the federal and state governments over Paris Club refund, the minister said efforts are on “towards an out of court solution” to the impasse.

She also assured Nigerians that there was no friction between fiscal and monetary authorities.

Mrs. Ahmad said her ministry works harmoniously with the CBN governor even when “there might be some areas of disagreement”.




By Odoh Dominic Chukwuemeka

FOR ADVERT PLACEMENT CALL OR TEXT OUR WHATSAPP NUMBER; +886960917723, +886970840314
Click to Follow our website Dco-global-news.com
FB page; DCO Global News
DCO Global News Contacts;
For information on Press Releases, News, Advertisements, Videos, Photos, Events happenings, Promotional Events and Adverts, Share your stories with us, Please Call or Send a Text to our Whatsapp number; +886963563485, +886970840314.
Or send an email to; chionikdom02@yahoo.com, emydom29@gmail.com
(Like and Follow our Facebook Page; DCO Global News)
(Follow us on Twitter; @Dcoglobalnews)
(Follow us on LinkedIn; Dco Global News)
(Follow us on Tumblr; Dcoglobalnews)
(Follow us on Google +; Dco Global News TV)
(Subscribe to our YouTube Channel; DCO Global News TV)
Subscribe to DCO Global News.
Advertise with us.
Send us enquiries, Press releases.
DCO Global News Promotes the Values of Democracy, Human Rights, Values of Life and Freedom of Expression in a Region Where Genuine Media Freedom Remains Elusive and where many Media outlets remain Divided along Ethnic Lines.
Let’s 🚶 Walk the 🚶 Walk 🚶 Together.
Don’t miss a thing, get the latest updates to fuel your conversation daily.
For 2021, DCO Global News commit to another year of high-impact reporting that can counter misinformation and offer an authoritative, trustworthy source of news for everyone. With no shareholders or political owner, we set our own agenda and provide truth-seeking journalism that’s free from commercial and political influence. When it’s never mattered more, we can investigate and challenge without fear or favour.
(Support DCO Global News.)
LET’S HAVE YOUR SAY, LET’S KNOW YOUR THOUGHTS.
LIKE, SHARE AND COMMENT.
TEXT AD: To advertise here.
Call Dominic +886970840314…
© DGN NEWS MEDIA 2021.
All Rights Reserved.

Zainab Ahmed

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s