Why Nigeria Can’t Stop Borrowing – CBN

The Central Bank of Nigeria (CBN) has stated that Nigeria cannot stop borrowing, especially when it is necessary as part of fiscal responsibility.

Godwin Emefiele, the governor of the Central Bank of Nigeria, made this statement at a national dialogue on Nigeria’s mounting debt, titled: “The Rising Public Debt in Nigeria and the Challenges of National Development” on Wednesday.

According to Emefiele, who was represented by the Assistant Director, Monetary Policy Department, CBN, Dr. Tawose Joseph, there is no crime in borrowing, but 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. The private entity also burrows to survive. But what matters most is the quantum of the debt and the usage of the debt as well. If money is burrowed as a result of the 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 understands that when there is a crisis in an economy, then 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 that the CBN formulates policies that positively affect the grassroots people, adding that the Apex Bank considers facts and figures before making policies.

He said that the CBN has rolled out 37 initiatives to positively affect the economy, but noted that there are challenges despite that intervention.