The federal government has suspended its plan to borrow $22.7bn from international creditors.
The decision was announced on Monday by the Minister of Finance, Zainab Ahmed, at the 2020 international conference on the Nigerian commodity market.
The minister said that the government had suspended its plan to continue with the $22.7bn loan even if approved by the National Assembly.
She disclosed that current realities did not support borrowing.
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According to Ahmed, “the parliament is still doing its work on the borrowing plan. One arm of the parliament has completed theirs and the other arm is still working and it is a process that is controlled by the parliament itself, so we are waiting.
“However, we are not going out immediately because the market indication is not in favour of external borrowing at this time. Even if we get approvals, we will defer it and watch the market and go out only when the timing is right.”
The minister reiterated the government’s commitment to diversifying the country’s economy, saying the negative impact of coronavirus was an awakening call for speedy action.
She said the challenges in the global economy had necessitated the need for the country to develop a non-oil attitude.
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“Government plans to prioritize expenditures in favour of major capital expenditures that would have a greater impact, and which would create jobs and visibility and also enhance the ease of doing business in the country,” Ahmed added.
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