The Central Bank of Nigeria (CBN) has said Nigeria cannot stop burrowing, especially when it is necessary as it is part of fiscal responsibility.
The CBN governor, Mr. Godwin Emefiele, made this remark at a national dialogue on Nigeria’s rising debt profile, titled: “The Rising Public Debt in Nigeria and the Challenges of National Development,” Wednesday.
Emefiele, who was represented by the assistant director, Monetary Policy Department, CBN, Dr. Tawose Joseph, said there is no crime in borrowing, but that there should be monitoring and evaluation of the money borrowed and the purpose it is meant for.
“Debt is part of fiscal responsibility. Debt is never a crime or a sin. Private entities also burrow to survive. But what matters is the quantum of the debt and the usage of the debt as well.
“When you compare the income and expenditure and is efficiently used, it is part of government responsibility. But where the fear is when it is above the threshold.
“CBN understands that when there is crisis in an economy, the burden of debt would be something. That is why the conventional and non-conventional instruments are there to ensure price stability in the economy,” he said.
He said the CBN formulates policies that positively affect the grassroots people, adding that the apex bank considers facts and figures before making policies.
He said the CBN has rolled out 37 initiatives to positively affect the economy,and noted that there are challenges despite that intervention. (Ripples Nigeria)
