The Director-General of Nigeria’s Debt Management Office (DMO), Dr. Abraham Nwankwo, has said that the Federal Government is set to borrow N1.84 trillion (about $9.3bn) from external and domestic markets to finance the 2016 budget.
Nwankwo told a workshop on Debt sustainability and the challenge of financing economic recovery by the DMO in Abuja that the government would borrow N900 billion and N984 billion from the external and domestic markets respectively to fund the budget.
He noted that the challenge of infrastructural development and economic recovery are enormous; therefore, the imperative of the government to seek for alternative funding of which debt sourcing was an integral part. Nwankwo urged the media to key into the government’s debt management policy, adding that the media has a critical role in informing Nigerians of the importance of debt financing in economic development, especially with declining oil and gas revenue being faced by the country and around the globe.
According to him, Nigeria’s debt-to-Gross Domestic Product (GDP) ratio as at December last year was at 13.02 percent, which was far below the peer group ratio of 56 percent. He disclosed that to address the huge infrastructural deficit in the country effectively, the funding implications for Nigeria is about $25 billion per annum over the next five to seven years.