Nigeria Can’t Stop Borrowing – CBN Governor, Emefiele Explains

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Nigeria can’t stop borrowing especially when it is necessary, the Central Bank of Nigeria, CBN disclosed.

On Friday, the CBN Governor, Mr Godwin Emefiele disclosed this development in Abuja at the National Dialogue on Nigeria’s rising debt profile themed: “The Rising Public Debt in Nigeria and the Challenges of National Development”. This was organized by the Action Aid Nigeria (AAN).

According to the CBN Governor who was represented by Dr Tawose Joseph, the Assistant Director, Monetary Policy Department, CBN said debt is never a crime or a sin but it is part of a fiscal responsibility.

He added that there the money borrowed should monitored and evaluated careful and its purpose taken into consideration.

He said, “Debt is part of fiscal responsibility. Debt is never a crime or a sin. The private entity also borrows to survive. What matters most is the debt’s quantum and the debt usage as well as if money is borrowed as a result of the shortage of income generation.

“When you compare the income and expenditure, and it 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 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.”

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