• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Opinions Blurb

Kemi Adeosun reveals the reasons behind massive government borrowing

Onome Ohwovoriole by Onome Ohwovoriole
October 16, 2017
in Blurb, Business News
CBN Gov Godiwn Emefiele

Dr. Godwin Emefiele & Mrs Kemi Adeosun

Share on FacebookShare on TwitterShare on Linkedin

Finance Minister, Kemi Adeosun at a press conference held during the recent World Bank/International Monetary Fund (IMF) annual meetings held in Washington, stated that the government had to embark on massive borrowing, to prevent downsizing the civil service.

We felt that laying-off thousands of persons was not the best way to stimulate growth. Also, when we came into office, about 27 states could not pay salary. If we had allowed that situation to persist, we would have been in depression by now. So, we took the view as a government  that the best thing to do was to stimulate growth and spend our way out of trouble, get the state governments to pay salaries, making  sure that the federal government pays and invests in capital infrastructure,”

 

 

RelatedStories

Kemi Adeosun

Ex-finance minister, Kemi Adeosun, reacts to court verdict on NYSC certificate forgery

July 7, 2021
diaspora bond

How Diaspora Bonds Work and Benefits

September 20, 2019

 

Kicking the bucket down the road

The current administration, like many others is avoiding the necessary hard choices the country has to make. A greater proportion of government revenues in the country, go towards recurrent expenditure ( salaries and wages). Nigeria’s current debt service to revenue ratio at over 60% are  unsustainable, for a developing country. Rather than downsize or make the civil service more effective, government has choosen the easier option of borrowing.

Implications of the massive borrowing

Government borrowing has crowded out the private sector from lending, as banks make more money from the interest on debt securities, than give out loans. Nigeria has been able to raise Eurobonds because foreign investors have the confidence that the government will repay such funds from crude oil revenue. In the event of another oil shock, the country would be caught off guard. Hopes of any hard reforms happening soon are dim as the election cycle approaches.

State governments will be left worse off, because most of them are heavily dependent on FAAC allocations. Bailout funds from the federal government have been mismanaged in some states.


Follow us for Breaking News and Market Intelligence.
Tags: Kemi Adeosun
Onome Ohwovoriole

Onome Ohwovoriole

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com

Related Posts

Kemi Adeosun
Business News

Ex-finance minister, Kemi Adeosun, reacts to court verdict on NYSC certificate forgery

July 7, 2021
diaspora bond
Financial Literacy

How Diaspora Bonds Work and Benefits

September 20, 2019
Minister of Financ, Zainab Ahmed
Business News

Three key statements Zainab Ahmed made upon resumption as Finance Minister

September 18, 2018
Kemi Adeosun
Politics

Kemi Adeosun’s hits and misses

September 17, 2018
Kemi Adeosun
Business News

Kemi Adeosun’s resignation stirs controversy long after she flees Nigeria

September 17, 2018
new tobacco and alcohol tax
Business News

How Social Media is reacting to Kemi Adeosun’s resignation

September 15, 2018
Next Post
Redstar Express Plc gives reasons for its planned capital raise

Redstar Express Plc gives reasons for its planned capital raise

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • SEPLAT tops trading value as All-Share Index hits N80 trillion; ACCESSCORP leads volume 
  • President Trump issues 50-day ultimatum to Putin, threatens 100% tariffs over Ukraine war 
  • FG to establish National Design and Development Agency to support Nigerian innovators 

Follow us on social media:

Recent News

Weekly Stock Update: Nigerian Exchange Group record growth w-o-w, up by 0.48%

SEPLAT tops trading value as All-Share Index hits N80 trillion; ACCESSCORP leads volume 

July 14, 2025
President Trump issues 50-day ultimatum to Putin, threatens 100% tariffs over Ukraine war 

President Trump issues 50-day ultimatum to Putin, threatens 100% tariffs over Ukraine war 

July 14, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics