The President of Nigeria, Muhammadu Buhari has assured Nigerians especially those who have shown concern about the constant borrowing of the federal government that debt level of the country is still within sustainable limit.
While presenting the 2022 Appropriation Bill to a joint session of law makers at the National Assembly in Abuja on 7th October, the President made the disclosure.
“Some have expressed concern over our resort to borrowing to finance our fiscal gaps. They are right to be concerned. However, we believe that the debt level of the Federal Government is still within sustainable limits. Borrowings are targeted at specific strategic projects and can be verified publicly”, he stated.
”As you are aware, we have witnessed two economic recessions within the period of this administration. In both cases, we had to spend our way out of recession, which necessitated a resort to growing the public debt”.
”It is unlikely that our recovery from each of the two recessions would have grown as fast without the sustained government expenditure funded by debt,” Buhari added.