The Federal Government, as part of efforts to curb the country’s foreign and local debts, on Wednesday considered revised guidelines on public borrowing.
The Federal Executive Council, during its meeting, also directed the Minister of Finance, Mr. Olusegun Aganga, to brief it monthly on the country’s $4.5bn foreign debt.
The measure, according to FEC, is to avoid plunging the nation into another huge debt.
The FEC meeting, presided over by President Goodluck Jonathan, deliberated on the revised guidelines for external debt borrowing to monitor the country’s foreign loans.
Aganga, who briefed journalists on the outcome of the meeting, reiterated that the country’s debt profile was low compared to other nations.’
He, however, said that the government was determined not to exceed the borrowing limit of 25 per cent of the national Gross Domestic Product up to 2014.
He also gave an analysis of Nigeria’s outstanding debt as at September 2010, which stood at $32.8bn; consisting of $4.5bn (14 per cent) external and $28.2bn (86 per cent) domestic debts.
Aganga also explained that the government was interested in ensuring that borrowing was expended on the critical areas of the economy, particularly infrastructure.
He said, “When we are borrowing – again this is something, which is so important to this government – we want to make sure that we have robust guidelines and controls in place and also that we have a good understanding of the profile.
“What portion is domestic? What portion is external? What is the mix of the loan? How long have we had the loan? What is the cost to the country? But far more importantly, how do we improve the quality and the efficiency of spending, making sure that if and when we take any loan, it is for critical infrastructure, things of national interest.”
The minister added, “We have a history. Our fingers were burnt many years ago and we don’t want our fingers to be burnt again. The whole idea is that this is important to this government.
“On a regular basis, hopefully, on a monthly basis, I will be giving an update to the council on where we are in terms of debt profile and on the controls we have in place.”
He explained that the measures were to ensure accountability, adding, “If you want to talk about debt profile, I think Fitch also mentioned it; compared to our peers in the world, it is very low, but that is not a good reason to continue to borrow irresponsibly.”
Source:http://www.punchng.com/Articl.aspx?theartic=Art201010282524667
No comments:
Post a Comment