Nigeria’s Minister of Finance, Kemi Adeosun, on Thursday, explained the rationale behind the Federal Government’s decision to borrow $5.5billion.
Adeosun, who appeared on Channels Television’s Sunrise Daily, said: “we are not in a huge amount of debt.”
The minister’s statement came two weeks after President Muhammadu Buhari wrote to the National Assembly, seeking the approval for $5.5bn external loans to finance the 2017 Appropriation Act.
She, however, maintained that the country’s debt profile stands low when compared to developed nations.
The minister said: “Nigeria’s borrowings are actually low relative to the size of our GDP; it is one of the areas where we are doing very well. We have a debt GDP of 17 percent; Ghana is 68, South Africa is about 52, most developed countries are about 50.
“The threshold for a developing economy is 40; we are 17, Britain is 89, America is over a hundred. Even Germany which is probably the most conservative borrowing country in Europe is 68. So we are not in the huge amount of debt.”