Faced with reduced revenue following crude oil price crash, the Federal Government has decided to borrow money to fund its capital projects and meet other obligations next year.
As the government yesterday unveiled ambitious developmental plans, the country struggles to sell its once-highly-in-demand crude oil, the price of which hit a 10-year low in November.
The country crude oil production declined by 205,300 barrels per day in November, according to the latest report of the Organisation of Petroleum Exporting Countries (OPEC), and other members of the cartel produced beyond their respective quotas during the month.
While the Federal Government has indicated plans to raise its debt obligation to fund capital and other development projects, the financial sector is rolling out initiatives and incentives to drive employment for at least, one million graduates, through small business support and ownership.
According to the Minister of Finance, Mrs. Kemi Adeosun, who spoke at the Seventh Yearly Bankers Committee Retreat, in Lagos, yesterday, the country has a Debt-to-Gross Domestic Product which is as low as 12 per cent to hold on to “and that gives us some space to manage our deficit budget, which is aimed at stimulating growth.