Why Nigeria Can’t Stop Borrowing – CBN

The Central Bank of Nigeria (CBN) has said that Nigeria cannot stop burrowing, especially when it is necessary as it is part of fiscal responsibility.

The CBN Governor, Mr. Godwin Emefiele, said this on Friday in Abuja at the National Dialogue on the Nigeria’s rising debt profile, titled: “The Rising Public Debt in Nigeria and the Challenges of National Development” organised by the ActionAid Nigeria (AAN).

This is as AAN and stakeholders, expressed worry over unstable levels of borrowings and rising national debt profile under the President Muhammadu Buhari-led administration and rising poverty level.

According to Emefiele, represented by the Assistant Director, Monetary Policy Department, CBN, Dr. Tawose Joseph, there is no crime in borrowing, but that there should be monitoring and evaluation of the money borrowed and the purpose meant for.

“Debt is part of fiscal responsibility. Debt is never a crime or a sin. Private entity also burrows to survive. But what matter most is the quantum of the debt and the usage of the debt as well. If a money is burrowed as a result of shortage of income generation.

“When you compare the income and expenditure and is efficiently used is part of government responsibility. But where the fear is when it is above the threshold.

“CBN understand that when there is crisis in an economy, then the burden of debt would be something. That is why the conventional and non-conventional instruments is there to ensure price stability in the economy,” he said.

-Daily Trust