Finance minister: FG won’t seek relief from N31trillion debt

Finance minister: FG won’t seek relief from N31trillion debt

- The federal government says it is not interested in debt relief despite its mounting debts

- Mrs Zainab Ahmed, Nigeria's minister of finance, budget and national planning, made the position of the Buhari administration known recently

- Nigeria's huge debts have in the past attracted criticisms from both within and outside the country

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Nigeria's minister of finance, budget and national planning, Mrs Zainab Ahmed has said the country will not apply for debt relief to get out of its crippling N31 trillion debt burden.

The minister made the government's position known on Tuesday, October 13 in Abuja during the public presentation of Budget 2021, adding that the Buhari administration is not considering such option at this time.

According to her, many loan agreements have been entered with various lenders, adding that asking for debt relief would portend Nigeria in the eyes of its creditors as a country that cannot repay its debts.

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The minister also defended the 2021 budget deficit, which exceeds the Fiscal Responsibility Act threshold of three per cent.

Finance minister: FG won’t seek relief from N31trillion debt
Minister Ahmed said the government is committed to paying its debts. Photo credit: @FinMinNigeria
Source: UGC

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The N5.21trillion budget deficit exceeds the three per cent threshold prescribed by the FRA 2007 for the annual budget.

Ahmed said that although the 2021 budget deficit exceeded the three per cent threshold, the government has not breached the law.

Meanwhile, the Federal Executive Council (FEC) has approved the establishment of two shoes, garments and leather processing factories in Janguza, Kano state and Aba in Abia state under a Private Public Partnership arrangement.

This was disclosed by the minister of interior, Rauf Aregbesola, after the FEC meeting chaired by President Muhammadu Buhari on Wednesday, October 7.

The minister said that the project would be handled by a Nigerian company with the support of a partner from China.

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According to him, the project would provide about 4,330 direct and indirect job opportunities apart from N5.1billion worth of investment.

In a related development, the spokesman for the Nigerian House of Representatives, Honourable Benjamin Kalu, has commended the federal government over the approval for the construction of Umuahia-Bende-Ohafia road in Abia state by FEC.

At its sitting on Wednesday, September 23, the FEC approved the construction of the road which had been abandoned for 44 years.

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