The Central Bank of Nigeria (CBN) has said that Nigeria cannot stop burrowing, especially when it is necessary as it is part of fiscal responsibility.
Mr Godwin Emefiele, the CBN Governor, disclosed this in Abuja on Friday at the National Dialogue on Nigeria’s rising debt profile, titled: “The Rising Public Debt in Nigeria and the Challenges of National Development,” organised by the Action Aid Nigeria (AAN).
This is as AAN and stakeholders, expressed worry over unstable levels of borrowings and rising national debt profile under the President Muhammadu Buhari-led administration and rising poverty level.
Emefiele, who was represented by Dr Tawose Joseph, the Assistant Director, Monetary Policy Department, CBN, said there is no crime in borrowing.
He however noted that there should be monitoring and evaluation of the money borrowed and the purpose meant for.
“Debt is part of fiscal responsibility. Debt is never a crime or a sin. Private entity also borrows to survive. But what matter most is the quantum of the debt and the usage of the debt as well. If a money is burrowed as a result of shortage of income generation.
“When you compare the income and expenditure and is efficiently used is part of government responsibility. But where the fear is when it is above the threshold.
“CBN understand that when there is crisis in an economy, then the burden of debt would be something. That is why the conventional and non-conventional instruments is there to ensure price stability in the economy,” he said.