The current president of Nigeria, President Muhammadu Buhari on October 7 assured Nigerians, who have expressed concern about recent borrowings by the Federal Government, that the debt level is still within sustainable limits.
President Buhari gave the assurance on Thursday, while presenting the 2022 Appropriation Bill to a joint session of lawmakers at the National Assembly in Abuja.
“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.
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,” he said.