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Borrowing will aid economic growth – Debt Management Office

By on November 21, 2012


Director General, DMO, Abraham Nwankwo

In the midst of the debate and furore over the request by the Federal Government to request for a foreign loan worth about N7.9billion, the Debt Management Office has thrown its weight behind the decision.

The Director General of the Office Dr Kenneth Nwankwo stated this while briefing newsmen after a meeting of the Supervisory board of the DMO headed by Vice-President Dr Namadi Sambo.

Stating that with the need for the country to drive a steady flow of Foreign Direct Investment of a steady amount of about $10 billion which means a lot has to be done in terms of projects that will facilitate the enabling environment for investments to thrive in the country.

Dr Nwankwo further stated that the current debt profile of the $6.29 billion and domestic debt  of N6.3 trillion is sustainable for the aspiring developing African leading economy.

One of Nigeria’s challenge over the years has been mismanagement of loans collected in the past from various International donors like the Paris Club, London Club, International Monetary Fund, and the World Bank which is creating the perceived scepticisms from various corners  on the viability of this intended loan request.

The Debt Management Office believes that the Federal Government’s  resolve to  ensure that it efficiently manages the Internal  revenue and totally reduces wastage  in the utilization of funds for projects and programmes.

Part of the crisis rocking the globe  is the soaring level of  debt crisis severely affecting key economies like Spain, Italy, Japan, Greece, Ireland, Portugal and even more recently and potentially the United States of America.

According to Nwankwo ‘Borrowing  and incurring  debts are not an anomaly but not being able to judiciously use the loans for what they were gotten for becomes the burden and challenge’.

It is expected that more debates and clearly concise plans of the Government on why the loan is needed and what it would be utilized for will play in the days  to come as the National Assembly considers the proposal.

One Comment

  1. Nura Mohammed Kamfut

    November 21, 2012 at 7:53 pm

    How come will dat b possible, somebody talking about economic growth & borrowing at d same time? I think d statement is contradicting most especially in dis country where corruption is our main obstacle 2 get it right!