Nigeria won’t have exited recession without borrowing – Finance Minister, Zainab Ahmed

The Minister of Finance, Budget and National Planning, Zainab Ahmed has again defended recent borrowings by the Federal Government, insisting they were instrumental to the country’s exit from recessions. The Minister said the borrowings have helped the government in providing infrastructure to boost the economy.

She said this on Friday during the Public Presentation and Breakdown of the 2022 Appropriation Bill.

“Having witnessed two consecutive recessions, we have had to spend our way out of the recession which contributed significantly to the growth of our public debts,” the minister stated in Abuja, one day after President Muhammadu Buhari presented the Appropriation Bill to the National Assembly.

“It is unlikely that our recovery from these recessions would have been as fast without the sustained government expenditure funded partly by debt, she said

Before now, the minister had said Nigeria will fund its 2022 budget deficit, pegged at N6.258 trillion, through fresh borrowings.

“Borrowings are essential to enable us to deploy necessary capital expenditure and invest in human capital development,” she maintained.
The move was greeted with controversy across the country. Critics and members of the opposition said the development, as well as other borrowings by the Federal Government, call for concern.

The move was greeted with controversy across the country. Critics and members of the opposition said the development, as well as other borrowings by the Federal Government, call for concern.