The current debt structure that heavily borrows domestically does not support long term growth ambitions of the federal government and so it must be amended, the Minister of Finance, Kemi Adeosun has said.
Speaking on Thursday at the United Capital launch of its Eurobond and Wealth for Women Funds, Adeosun said the government need longer term and cheaper finance to support "the infrastructure investments we must make”.
“Today, our debt profile is un-balanced. We borrow heavily domestically, with too short a tenure, 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.”
A statement from S A Media to the Minister of Finance, Festus Akanbi quoted the minister that: The proceed from the bond are for infrastructure development which will play a fundamental role in unlocking Nigeria’s economic potential, laying a foundation for economic competitiveness and long-term future growth.
Other speakers represented at the event included Tony O. Elumelu, Chairman of Heirs Holdings, Toyin Saraki, Wife of the Senate President, and Erelu Bisi Fayemi, President, African Women’s Development Fund.
While speaking on the outlook for the Nigerian economy, the Minister noted that the Government is committed to increasing capital spend on critical infrastructure across key areas; power, rail, roads and water which will underpin growth in priority sectors especially Agriculture and Agro-Allied, Solid Minerals, Manufacturing, and Power. “We will now target 30% of Government expenditure on infrastructure, up from 10%”.