The Federal Government's proposed borrowing of N7.24 trillion for its Accelerated Stabilisation and Advancement Plan (ASAP) aims to boost economic stability and drive growth. Despite concerns over rising debt levels and revenue shortfalls, the government highlights the necessity of emergency intervention in critical sectors like agriculture, energy, and healthcare.
The Federal Government is considering borrowing an additional N7.24 trillion as part of its Accelerated Stabilisation and Advancement Plan (ASAP) to propel economic stability and growth.
This move comes amidst mounting concerns over Nigeria's escalating debt levels, with total public debt projected to soar to N113.4 trillion. Despite the risks associated with increased borrowing, the government aims to channel these funds into emergency interventions across vital sectors, including agriculture, energy, healthcare, and business support.
These interventions, estimated to cost between N6.6 trillion and N5 trillion, seek to enhance food security, clear outstanding power subsidies, support MSMEs, and improve access to essential medicines. However, such ambitious spending plans could strain the country's debt sustainability and leverage metrics, especially if revenue shortfalls persist.
The government remains optimistic about executing the plan with a reduced reliance on borrowings, emphasizing the promotion of domestic and foreign investment and the privatization of critical government assets. Moreover, Nigeria has secured a favorable loan package of $2.25 billion from the World Bank at a low one percent interest rate, signaling a commitment to exploring alternative sources of financing.
