- October 17, 2017
- Posted by: Godwin Elijah
- Category: National News
The World Bank has warned President Muhammadu Buhari government to stop borrowing to develop the nation’s infrastructure and stimulate the economy.
The World Bank, through its Senior Economist, Gloria Joseph-Raji, said this in reaction to comment by Minister of Finance, Kemi Adeosun that the administration needs to borrow more.
Joseph-Raji said that dwindling revenues had raised a concern both at the Federal Government and the World Bank on sustainability of Nigeria’s borrowings as debt-to-revenue ratio had increased by 25 per cent within a period of one year.
Adeosun had said the nation needs to tolerate more debts by borrowing because Nigeria currently has one of the lowest debt-to-Gross Domestic Product figures in the world adding that the current administration has no plan to go into massive borrowing which it would not be able to sustain.
Explaining more on why the country had to borrow, Adeosun said, the nation is confronted with the challenge of either reducing public services or to begin to generate revenue.