FG Depends On Loans To Fund Over 90 Percent Of Budget Deficit – DMO

Agora Policy Disagrees With DMO, Says Nigeria's Debt Is Unsustainable

The Director-General of the Debt Management Office (DMO), Patience Oniha, stated that the Federal Government depends on debt to fund over 90 percent of budget deficits.

Oniha made the disclosure at a workshop on executive leadership hosted for the senate committee on local and foreign debts and the house committee on aids, loans and debt management, on Monday, in Niger state.

The DMO DG, public debt was crucial in supporting Nigeria to bounce back from the recession created by economic shocks, which added pressure on the country’s revenue.

She stated further that the government is aware of the need for caution when borrowing, especially with mounting public debt and rapidly increasing debt service obligations.

“It is true that the public debt has been growing. We should remember that Nigeria has witnessed economic shocks with major impacts on revenue that have resulted in recession twice, and borrowing was a major tool for reversing the trends,” Oniha said.

“However, going forward, there should be a strong emphasis on revenue generation from multiple sources other than crude oil to ensure that debt is sustainable.”

The DMO DG stated that those initiatives that have been initiated to fund capital projects through Public-Private Partnerships should be sustained to reduce the need for direct borrowing by the government to finance infrastructure projects.

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