L
LequteMan
Guest
The Minister of State for Finance, Mr Bashir Yuguda, on Tuesday in Abuja said states had been discouraged from borrowing due to their existing high debt profiles.
Yuguda said this while giving a lecture on “Nigeria’s Economic Policies and Reforms’’ at the National Defence College.
He said the discouragement from borrowing was because many state governments were heavily burdened with debt with limited revenue to service them and carry out other assignments.
The minister said debt servicing was currently on the rise as a back drop of high domestic borrowing to finance government expenditure.
According to him, by 2010, government borrowing has risen to N1.36 trillion from around N530 billion in 2009.
“The domestic debt profile of some states is scary. They are so much in debt that only a small amount of their allocation gets to them at the end of the day.
“This is because most times, debt servicing is removed from source.
“This is the reason why we discourage them from borrowing. Even if they will, it has to be on prioritised projects with high returns. Prioritisation is paramount in these difficult times,’’ he said.
#Nigeria #BashirYuguda
Yuguda said this while giving a lecture on “Nigeria’s Economic Policies and Reforms’’ at the National Defence College.
He said the discouragement from borrowing was because many state governments were heavily burdened with debt with limited revenue to service them and carry out other assignments.
The minister said debt servicing was currently on the rise as a back drop of high domestic borrowing to finance government expenditure.
According to him, by 2010, government borrowing has risen to N1.36 trillion from around N530 billion in 2009.
“The domestic debt profile of some states is scary. They are so much in debt that only a small amount of their allocation gets to them at the end of the day.
“This is because most times, debt servicing is removed from source.
“This is the reason why we discourage them from borrowing. Even if they will, it has to be on prioritised projects with high returns. Prioritisation is paramount in these difficult times,’’ he said.
#Nigeria #BashirYuguda
