THE Federal
Government is expected to borrow $25 billion by 2015, Nigeria’s Debt Management
Office, DMO, told the House of Representatives yesterday.
Government is expected to borrow $25 billion by 2015, Nigeria’s Debt Management
Office, DMO, told the House of Representatives yesterday.
This
disclosure was made at a meeting with the House Joint Committee on Finance,
Legislative Budget and Research, National Planning and Aid, Loans and Debt
Management scrutinising the 2013-2015 Medium Term Expenditure Framework and
Fiscal Strategy, MTEFF, paper submitted by President Goodluck Jonathan.
disclosure was made at a meeting with the House Joint Committee on Finance,
Legislative Budget and Research, National Planning and Aid, Loans and Debt
Management scrutinising the 2013-2015 Medium Term Expenditure Framework and
Fiscal Strategy, MTEFF, paper submitted by President Goodluck Jonathan.
The projected
figure represents the country’s foreign and domestic borrowings flowing from
2013-2015 under review.
figure represents the country’s foreign and domestic borrowings flowing from
2013-2015 under review.
DMO’s
Director General, Dr. Abraham Nwankwo in his presentation on Nigeria’s overall
debt profile and expected borrowing for 2013-2015 told the joint panel that for
2012, Nigeria external debt is projected at $9,021.53 billion; 2013 ($12,165.10
billion); 2014 ($14,585 billion) and 2015 ($16,765 billion).
Director General, Dr. Abraham Nwankwo in his presentation on Nigeria’s overall
debt profile and expected borrowing for 2013-2015 told the joint panel that for
2012, Nigeria external debt is projected at $9,021.53 billion; 2013 ($12,165.10
billion); 2014 ($14,585 billion) and 2015 ($16,765 billion).
A breakdown
for domestic debt is projected at: 2012 ($6,483.81 billion); 2013 ($7,125.93
billion); 2014 ($7,792.41 billion) and 2015 ($8,4441.86 billion).
for domestic debt is projected at: 2012 ($6,483.81 billion); 2013 ($7,125.93
billion); 2014 ($7,792.41 billion) and 2015 ($8,4441.86 billion).
At the
meeting, Chairman House Committee on Legislative Budget and Research, Opeyemi
Bamidele, queried the absence of a debt ceiling and what it described as
Nigeria’s “aggressive” borrowing from local and international sources,
lawmakers said the development has stifled chances for private business to
access loans locally.
meeting, Chairman House Committee on Legislative Budget and Research, Opeyemi
Bamidele, queried the absence of a debt ceiling and what it described as
Nigeria’s “aggressive” borrowing from local and international sources,
lawmakers said the development has stifled chances for private business to
access loans locally.
He
said: “We are now aggressively borrowing in such a manner that the private
sector is now being stifled as the government is now the only big spender in
the economy. The private sector cannot access funds domestically, they cannot
create jobs.
said: “We are now aggressively borrowing in such a manner that the private
sector is now being stifled as the government is now the only big spender in
the economy. The private sector cannot access funds domestically, they cannot
create jobs.
The DG in
his response to Bamidele’s query on rising debts countered, “Every
country in the world borrows, even the most financially prudent countries like
Germany and the US.”
his response to Bamidele’s query on rising debts countered, “Every
country in the world borrows, even the most financially prudent countries like
Germany and the US.”
In another
development, the House joint committee refused a Central Bank of Nigeria,
CBN, delegation from making a presentation at the meeting insisting that the
CBN governor, Mallam Sanusi Lamido Sanusi appear in person today by 10 am to
defend the MTEFF paper.
development, the House joint committee refused a Central Bank of Nigeria,
CBN, delegation from making a presentation at the meeting insisting that the
CBN governor, Mallam Sanusi Lamido Sanusi appear in person today by 10 am to
defend the MTEFF paper.
The panel
insisted that any delay in the passage of the MTEFF should be blamed on the
action or inaction of the CBN.
insisted that any delay in the passage of the MTEFF should be blamed on the
action or inaction of the CBN.
Chairman
House Committee on Finance, House Committee on Finance, Abdumumini Jibrin
issued the directive. He said, “The CBN delegation I think from your
introduction, we have about two Directors here and a couple of Deputy Directors
and some Assistant Directors.
House Committee on Finance, House Committee on Finance, Abdumumini Jibrin
issued the directive. He said, “The CBN delegation I think from your
introduction, we have about two Directors here and a couple of Deputy Directors
and some Assistant Directors.
“As you are
aware this is the most important document when it comes to issue of our National
budget because this is where the budget parameters are been discussed and
approved by the National Assembly.
aware this is the most important document when it comes to issue of our National
budget because this is where the budget parameters are been discussed and
approved by the National Assembly.
“The role of
the CBN in this process (MTEFF consideration) is very important and in our own
opinion we believe that when dealing with issues like this we don’t expect
anyone less than the governor to be present here, you’re also aware that the
delay we are having or inability of the House to receive the President on
Thursday is because we’ve not completed this work and specifically because of
consultation like this with agency.
the CBN in this process (MTEFF consideration) is very important and in our own
opinion we believe that when dealing with issues like this we don’t expect
anyone less than the governor to be present here, you’re also aware that the
delay we are having or inability of the House to receive the President on
Thursday is because we’ve not completed this work and specifically because of
consultation like this with agency.
“On Thursday
Central Bank delayed us and I think from Thursday till today we are been
gracious to allocate you another day, we had expect that you would have
done what you can to get the governor to attend, you have not explain his
whereabouts or your deputy governors and you are sending a Chief Economist from
CBN to come and discuss the issues that has to do with monetary implications to
all these projections and the issue of exchange rates as it affects our economy
directly, unfortunately we will not accept this, we will give you another
chance for the governor to appear.
Central Bank delayed us and I think from Thursday till today we are been
gracious to allocate you another day, we had expect that you would have
done what you can to get the governor to attend, you have not explain his
whereabouts or your deputy governors and you are sending a Chief Economist from
CBN to come and discuss the issues that has to do with monetary implications to
all these projections and the issue of exchange rates as it affects our economy
directly, unfortunately we will not accept this, we will give you another
chance for the governor to appear.
The
House hinged its rejection of Jonathan’s request to present the 2013 budget on
October 4 on its yet to be concluded probe into implementation of the 2012
budget and the yet to be adopted 2013-2015 MTEFF.
House hinged its rejection of Jonathan’s request to present the 2013 budget on
October 4 on its yet to be concluded probe into implementation of the 2012
budget and the yet to be adopted 2013-2015 MTEFF.
