Nigeria plans to borrow $90mn to grow economy says Finance Minister

by Aviwe Mtila 0

Nigeria’s Finance Minister, Kemi Adeosun, has set out the government’s plans to reset the country’s economy which include US$90 million in borrowing for investments.

Speaking at the Lagos Business School, Adeosun outlined what the borrowed money would be used for, prioritising transport, roads, housing, power and health.

“We are committed to a countercyclical budget expenditure model. This has been a success in other nations, offsetting the risk of recession and creating an economy which is not based on either fragile consumer spending or over-reliance on oil,” says Adeosun.

The minister used her presentation to set out the four pillars of the economic plan which include a GDP growth of 4.2 per cent in 2017.

The other pillars include reducing the cost of governance and strengthening institutions to combat corruption, increasing government expenditure on infrastructure and funding the budget deficit and negative trade balance.

Adeosun says these pillars will help Nigeria’s economy in the substantial increase in gross capital formation, acceleration of GDP growth, infrastructure development, diversification of the economy and growth of the non-oil sector and with jobs and wealth creation.

The minister had a stern warning for those who had plans to misuse the money Nigeria is going to borrow.

“We must safeguard this borrowing, ensuring that the wastage within the existing systems are firmly addressed. We cannot mortgage our future based on a system that has failed us for generations. We must be careful in our borrowing and prudent in utilisation,” says Adeosun.