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Nigeria is a middle-income country, Adeosun corrects IMF

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7 years ago

April 21, 2018

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Minister of Finance, Kemi Adeosun has corrected the International Monetary Fund (IMF) over a recent statement credited to the institution referring to Nigeria as being among low-income countries.

Recall that that the IMF Managing Director, Ms. Chritine Lagarde had raised alarm last week over the rising debt level of low-income countries, Nigeria inclusive.

The IMF Boss had warned that such low-income countries may face hardship and be unable to repay these debts if they do not look for alternative measures to borrowing.

Reacting to the comment on Friday, Adeosun said it is correct that debt levels in low-income countries is a threat but Nigeria is better described as a middle-income country.

She assured that Nigeria’s debt level was still sustainable and under control. Adeosun disclosed that government was monitoring and analyzing its debt levels at every stage so that they don’t fall into the trap that most African States had fallen into.

“The concern that has been expressed, and it’s a legitimate one, is that debt levels in those countries are at 55 percent of GDP which is very high but Nigeria’s is at less than 20.” Adeosun noted.

The Minister revealed that the government decided to be more aggressive by expanding the budget, take on more debt and invest in infrastructure to develop more revenue and ensure recession wasn’t prolonged.

She noted that government intends to accelerate the growth and focus on its revenue mobilization which will reduce the country’s debt pressures.

She added that Nigeria did not need the World Bank to monitor its debt, saying the country has the Debt Management Office (DMO), various committees and 185 million citizens as monitors.