"We'll Not Borrow to Finance Economy": Finance Minister Wale Edun Says as Tinubu Knocks Buhari's Regime
- The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said Nigeria will no longer borrow to support the economy
- He disclosed that the government will use the proceeds from subsidy removal to finance the economy
- The development comes as Tinubu revealed that his administration will not use 90% of the country's revenue to service debts
PAY ATTENTION: Click “See First” under the “Following” tab to see Legit.ng News on your Facebook News Feed!
The Nigerian government says it does not intend to borrow from any local or foreign organisation following its subsidy removal from petrol and the multiple exchange rate unification.
Wale Edun, the Minister of Finance and Coordinating Minister for the Economy, revealed this at the end of the maiden Federal Executive Council meeting in Abuja on Monday, August 28, 2023.
Source: Getty Images
Proceeds from subsidy removal to be used to finance economy
Edun revealed that the proceeds from the subsidy removal would be rechanneled into various sectors to boost government revenue and improve the business climate for local and foreign investors.
PAY ATTENTION: Join Legit.ng Telegram channel! Never miss important updates!
He said the Nigerian government funded various palliatives from proceeds from the petrol subsidy removal to ease its effect on Nigerians.
The new minister revealed that President Bola Tinubu's administration wants to bring back the economy from the lethargy.
Tinubu's job-creation commitment
Also, the Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, shared that Nigeria is already getting investment offers from different sectors of the economy, including oil and gas, health, solid minerals, and agriculture.
The News Agency of Nigeria (NAN) revealed that she said the ministry would partner with relevant ministries, departments, and government agencies to achieve Tinubu's job-creation commitment.
Tinubu criticises Buhari's debt servicing
The development follows a subtle jibe by President Tinubu at the government of his predecessor, Muhammadu Buhari.
Tinubu, who spoke at a conference organised by the Nigerian Bar Association (NBA), said using 90% of revenue to service debt was not sustainable.
He said he would end the adoption of weak economic policies that resulted in spending Nigeria's revenue on debt servicing.
He said:
"It is a path to destruction. It is not sustainable. We must make the tough changes necessary for our country to get up from slumber and be respected among the world's great nations".
Nigeria's debt profile hits N50 trillion
According to the Debt Management Office, Nigeria's debt profile stands at N49.8 trillion as of March 31, 2023.
The country's total external debts are over N19.6 trillion, while domestic debt is at N30.2 trillion.
Nigeria’s debt stock hits N82 trillion amid CBN's naira devaluation
Legit.ng reported that Nigeria’s public debt has risen to N82 trillion from N77 trillion before the Central Bank of Nigeria (CBN) exchange rate unification, announced on Wednesday, June 14, 2023.
According to a press release by the CBN, all exchange rate windows are collapsed into the Importers and Exporters (I&E) window, showing a merger of the multiple exchange rates.
The unification has seen the naira fall to N664 per dollar and has attracted severe consequences for the nation’s economy, including a spike in public debt.
Source: Legit.ng
