In spite of the warning by the International Monetary Fund (IMF) that debt levels in African economies were rising, Minister of Finance, Mrs Kemi Adeosun on Friday said Nigeria’s debt level was still sustainable and under control.
Speaking to newsmen on the sideline of the G20 Finance Ministers and Central Bank Governors meetings at the ongoing 2018 IMF and World Bank meetings in Washington DC, Adeosun said Nigeria had nothing to worry about.
“It is correct that debt levels in low income countries is a threat but Nigeria is better described as a middle income country. “The concern that has been expressed, and it’s a legitimate one, is that debt levels in those countries are at 55 per cent of GDP which is very high but Nigeria’s is at less than 20. “So we are not one of the countries they have expressed concerns about.
However we will continue to manage our debt very very responsibly. “We are at 20 per cent of GDP and we do not intend to grow it aggressively. We are doing well at the moment as debt rate to revenue is going down gradually as we replace debt with revenue and refinancing our debt,” she said.
Adeosun said the government would keep monitoring and analysing its debt levels at every stage so that they don’t fall into the trap that most African States had fallen into.
The Minister reminded Nigerians that due to recession and near collapse of major sources of income, which it had inherited, from the former administration, the government had no choice but to borrow in order to save the country.