Director-General DMO, Dr. Abraham Nwankwo
The Director-General, Debt Management Office (DMO), Dr. Abraham Nwankwo, has said there is nothing wrong in borrowing as long as the proceeds are used for the purpose for which they are meant.
He stated that for a developing nation like Nigeria it is necessary for it to record faster economic growth with consistent flow of investment, stressing that this could also be possible if it collects loans to meet up with such developmental challenges.
Nwankwo said this Monday while briefing State House Correspondents after a meeting of the Supervisory Board of the DMO headed by the Vice-President Namadi Sambo.
According to him, borrowing and incurring debt are not an anomaly, as far as the money collected is used judiciously and appropriately accounted for in terms of project financing projects, provision of dividends of democracy to the people and the reduction of waste.
The director-general emphasised that the country required an inflow of about $10 billion, from foreign direct investment, every year in order to tackle its infrastructural deficit in the forthcoming decade.
Nwankwo, who put the nation’s debt profile at N6.3 trillion for domestic debt and $6.29 billion for external debt, stated that the debt profile was sustainable.
“Government is trying to ensure that we manage our internal revenue and also take measures to reduce waste,” Nwankwo said.
“Nigeria public debt will continue to be sustainable but everything should be done to ensure that the transformation programme is on course,” the DG explained.
“The country in its efforts to continue improving in public debt management now has a medium term debt strategy. Nigeria’s domestic debt stands at N6.3trillion, while external debt stands at $6.29 billion.”
“So, as you know Nigeria has huge infrastructural deficits and experts have estimated that you require a minimum of $10 billion inflow per annum, a conservative estimate, $10 billion dollars per annum for us to close the infrastructural deficits over the next 10 years.”
He further stated: “So, in our own case, government is finding ways of making sure we maximise internal revenue for the purpose of funding our various needs including infrastructure that is why you can see that there has been a lot of improvement over the last two years in the revenue collections from various sources including the Customs and the Inland Revenue.”