The Minister of Finance, Kemi Adeosun, has raised an alarm, over the shocking move by the APC government, to embark on massive foreign borrowing, to fund the 2017 budget.
According to the Minister, such massive external borrowing to fund the budget, would do the country more harm than good.
Adeosun, who raised the alarm while speaking at a Business Forum, in Abuja, on Tuesday, stated that the country will no longer seek such loans or excesses, or an additional $1.5 billion it had planned to raise from international debt markets.
She said: “We cannot borrow anymore, we just have to generate funds domestically, enough to fund our budget. Mobilize revenue to fund the necessary budget increase”.
Nigeria is in the middle if its first recession in 25 years, and had planned to borrow extensively from overseas, to fund a record breaking budget aimed at helping the country spend its way out of its economic conundrums.
The Acting President, Yemi Osinbajo, signed off on its record the N7.44 trillion ($24.39 billion) budget for 2017, in June.
The plan projects a deficit of N2.21 trillion, implying a deficit equivalent to 2.18% of Nigeria’s Gross Domestic Product, GDP.