Connect with us

Business

Why Nigeria can’t stop borrowing –CBN

Published

on

Nigeria's external reserve hits six months high at $44.14bn

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, gave this remark at a National Dialogue on Nigeria’s rising debt profile, titled: “The Rising Public Debt in Nigeria and the Challenges of National Development” on Wednesday.

According to Emefiele, who was 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 matters 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.

Read also: Nigeria used borrowings as tool for economic recovery – DMO

“CBN understands 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.

He said that the CBN formulates policies that positively affect the grassroots people, adding that the Apex Bank considers facts and figures before making policies.

He said that the CBN has rolled out 37 initiatives to positively affect the economy, but noted that there are challenges despite that intervention.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now