1. REVENUES: Nigeria’s challenge is not the burden of debt (our debt to GDP ratio is at a relatively low level of 13%) but instead low revenues. The Federal Government’s efforts to increase government revenue include: borrowing as cheaply as possible, strengthening our tax collection system and borrowing from external markets.
2. EXTERNAL BORROWING: The Federal Government is being cautious with its external borrowing, taking care to ensure it is doing it for the right reasons i.e. to fund infrastructure projects.
3. ECONOMIC RECESSION: Nigeria will get out of recession shortly, since the government is on the right track: implementing the right type of policies, improving government revenues and improving the efficiency of government spending.
4. ECONOMIC GROWTH: The seemingly slow pace of Nigeria’s emergence from the recession is on account of the total economic reset being implemented by the Buhari administration. The Federal Government’s goal is to encourage sustainable economic development through aggressive investment in power, rail, roads.
5. CAPITAL SPENDING: Capital spending will now account for 30% of Nigeria’s budgetary allocation, as against 10% in the past.
Watch the full Interview on CNBC, here
(Medium – Government of Nigeria)