Buhari seeks approval to raise $6.18bn
President Muhammadu Buhari is seeking the approval of the Nigerian Senate for a $6.18 billion debt raise. In a letter the president says the funds will be used to finance the 2021 budget deficit of 5.6 trillion naira. Paul Alaje, Senior Economist at SPM Professional joins CNBC Africa for more.
Wed, 19 May 2021 11:55:25 GMT
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AI Generated Summary
- President Buhari seeks Senate approval for a $6.18 billion debt raise to finance the 2021 budget deficit of 5.6 trillion Naira.
- Economist Paul Alaje highlights concerns about Nigeria's high debt levels and the potential risks of borrowing from the international market.
- Calls for increased domestic revenue generation and a shift towards concessionary loans to manage debt service costs are gaining traction.
President Muhammadu Buhari is seeking the approval of the Nigerian Senate for a $6.18 billion debt raise to finance the 2021 budget deficit of 5.6 trillion Naira. The proposal has sparked mixed reactions and concerns among experts and the public alike. In a recent interview with CNBC Africa, Paul Alaje, Senior Economist at SPM Professional, discussed the implications of Nigeria's borrowing plans and the potential risks associated with increasing the country's debt profile. The conversation delved into the challenges of borrowing from the international market, the impact on the economy, and the need to explore alternative revenue generation strategies. As the Nigerian government continues to seek funding to support critical sectors like education, health, and infrastructure, questions arise about the sustainability of borrowing and the effectiveness of utilizing borrowed funds. Amid calls for a shift towards concessionary loans and increased domestic revenue generation, the debate on Nigeria's debt strategy remains a pressing issue.
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