Nigeria moves to borrow additional N803bn within two months

Nigeria is in the process of borrowing an additional N803 billion loan as it struggles to raise fund for the full implementation of the 2019 national budget.

The loan which will be acquired from domestic lenders within the next two months is said to serve as an alternative to borrowing from the International market. The 2019 budget plan had made provisions for both foreign and domestic borrowing.

But Director-General of the Department of Debt Management Office (DMO), Patience Oniha disclosed that the fiscal year will be rounded off without incuring the foreign debt as proposed earlier.

“We will only raise the new domestic borrowing of N802.82 billion naira as provided in the 2019 Appropriation Act. We won’t be in the international capital market in 2019,” she said.

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Although the country is knee deep in debt, Oniha insisted that taking a new loan from domestic borrowers will not cause any unbearable harm to the country.

Nigeria’s debt profile currently stands at about N25tn and there are fears that the debt might pile up to a negative credit standing if the government continues  to take more loans.