Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, says Nigeria cannot rely on borrowing to fund the 2024 budget.
Mr Edun stated this on Thursday when he appeared before the joint Senate Committee on the 2024-2026 Medium Term Expenditure Framework, MTEF, and Fiscal Strategy Paper, FSP, in Abuja.
He stated that the best way Nigeria could fund its budget was to spend more money on infrastructure to generate more revenue.
“Clearly the environment that we have now, internationally as well as nationally we are in no position to rely on borrowing.
“We have an existing borrowing profile. Our direction of tariff is to reduce the quantum of borrowing or intercepting deficit financing in the 2024 budget.
“Simply put internationally there is focus among rich countries on bringing down the inflation rate to stabilise the economies and give them opportunity for investment growth.
“They are in the process, sacrificing that immediate goal for compacting their economies or at least contracting the money supplies and pushing up the interest rates and of course high interest rates and investments don’t go together,” he said.
Mr Edun added: “What is left for us to access those funds are expensive so it is the last thing that we must rely on.
“As we know we have all the figures and debt servicing and cushioning 98 per cent of government revenue.
“The last thing you can think of is to pile up more debts. Government needs to not just maintain its activity, it needs to spend more.
“If you look at government spending, if you look at the budget as a percentage of GDP, ours is one of the lowest being 10 per cent, even Ghana is at 25 per cent, rich ones they are 50 per cent.”
NAN