The Minister of Budget and National Planning, Senator Udo Udoma says Nigeria's current debt profile is not as risky as some economists want Nigerians to believe, as there was still room for the country to borrow more. He explained that the country has one of the lowest debt levels among other African countries.
The Minister in a statement by his Special Adviser on Media, Akpandem James also said positive trends recorded in the country’s economic indicators since the launch of the ERGP had shown that the plan was working.
“Nigeria has a sustainable debt profile with ample room to borrow more whenever we may require doing so. Nigeria runs no debt risk and the Debt Management Office carries out an annual Debt Sustainability Analysis to ensure that we stay that way,”
“We have been able to bring down inflation from 18.7 percent in January last year to 11.2 percent by August this year. Our aim is to bring inflation down to a single digit by the end of the plan period in 2020.
“The exchange rate market has been stabilised through the introduction of the investors and importers’ foreign exchange window. We have also been able to build up our external reserves from $27bn in 2016 to $43.9bn by early this month.
“Our current account, as a ratio of Gross Domestic Product, has moved from a deficit of 3.2 percent in 2015 to a surplus of 2.8 percent by end of last year. And this is built on export growth, including significant growth in non-oil exports that has resulted in the country recording a consistently positive trade balance since the fourth quarter of 2016.”