‘No cause for worry over Nigeria’s debt’

The financial expert, Mr. Rashid Yusuf, said on Tuesday that Nigerians should not unduly worry the country's debt profile under the administration of President Muhammad Bukhari, since it is connected with infrastructure development.

Yusuf, chief executive of Trust Yield Securities, said this in an interview with Nigeria's news agency (NAN) in Lagos.

"To meet various competing interests, this government had to borrow, as the price of oil fell when President Bukhari went to work.

"Since it is almost inevitable not to take a loan to execute the budget and ensure that the management mechanism functions," he said.

Yusuf said that borrowing to overcome the infrastructure gap in the country is one of the best ways to solve such problems.

"Fixing infrastructure through borrowing is a universal practice, as most of the countries we admire today have successfully coped.

"We can not be an exception, if our citizens hope that the improving infrastructure of the country should be improved," the expert said.

He urged the Nigerians to change their perceptions of borrowing, as it was spent on productive activities.

"There is nothing wrong with borrowing, especially when it is not spent on consumables, but on improving productivity," Yusuf said.

NAN reports that Nigeria's external debt for the past three years has grown by 11.77 billion dollars.

According to the debt statistics received from the Office of Debt Management (DMO), the country's external debt increased from $ 10.32 billion on June 30, 2015 to $ 22.08 billion as of June 30.

This means that the country's external debt obligations have increased by 114.05 percent over the past three years. (NAN)

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