Ifeanyi Onuba, Abuja
The Federal Government is reviewing its debt structure in a manner that will enable it get cheaper long-terms funds from international sources to support its investment in infrastructure.
The Minister of Finance, Mrs. Kemi Adeosun, stated this on Thursday in Abuja at the launch of United Capital’s Eurobond and Wealth for Women Funds.
She said infrastructure development would play a fundamental role in unlocking Nigeria’s economic potential, laying a foundation for competitiveness and long-term future growth.
Adesoun stated that investment in critical infrastructure across the country would unlock job and wealth creation, and strengthen economic development across all states in Nigeria.
She said, “Today, our debt profile is unbalanced. We borrow heavily domestically with too short a tenor, and at a high cost. The impact of this is that we spend too much on interest and we crowd out the private sector from borrowing to fund their investment plans.
“This debt structure does not support our long-term growth ambitions, and so, it must be amended. We need longer-term and cheaper finance to support the infrastructure investments we must make. We expect infrastructure development to underpin the return to inclusive and sustainable growth in Nigeria.”
Speaking on the outlook for the Nigerian economy, the minister noted that the Federal Government was committed to increasing capital spending on critical infrastructure across key areas such as power, rail, roads and water.
This, she added, would guarantee growth in priority sectors, especially in agriculture and agro-allied industry, solid minerals, manufacturing and power.
Adeosun stated, “We will now target 30 per cent of government expenditure on infrastructure, up from 10 per cent.
“We recognise that government spending alone will be inadequate to bridge the infrastructure gap and we have started engaging the private sector through our housing fund and the Road Trust Fund, for which fundraising is in progress.”
The post We’re amending debt structure to support infrastructure – Adeosun appeared first on Punch Newspapers.