Nigeria’s Minister of Finance, Zainab Ahmed, has said that the country was grappling with huge development deficit and lack of sufficient funds to address the problem.
The minister, during an interview with CNBC News, said these problems made it necessary for Nigeria to borrow in order to solve them.
However, she added that borrowing must be done with some level of responsibility and the funds used to build infrastructures for future returns.
She said, “In Nigeria, we keep a very close eye on debt sustainability analysis.
"We put a lot of emphasis on being transparent in our borrowing. We have a debt management office that was set up by law. On a quarterly basis...”
She said Nigeria’s debt is at N25trn ($83m), adding that country does not have a debt problem but a revenue problem.
Asked how the government was ensuring that Nigeria's debt was sustainable, the minister said the country conducts regular debt sustainability analysis.
She added, “We cannot develop effectively by just developing with revenue.
“The debt service is what is an issue and we need not reduce debt only but to increase revenue so that the debt service becomes easier and also the management of government becomes easier.
"We simply are underperforming in revenue and that is within our control to do.”
She also said with the new tax regulation, the government will eliminate tax for small businesses and reduce the burden on medium scale businesses.