FG Denies Printing N60bn to Augment FAAC
Finance Minister
The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, Wednesday denied that the federal government printed N60billion to augment its proceeds from the Federation Account Allocation Committee (FAAC) that were shared to states in March.
The allegation was raised by the Edo State Governor, Mr Godwin Obaseki who complained about the poor fiscal condition of the economy.
Thisday Newspaper reported that the Edo State Governor had said, “When we got FAAC for March, the federal government printed additional N50-N60 billion to top-up for us to share. This April, we will go to Abuja and share. By the end of this year, our total borrowings are going to be within N15-N16 trillion.”
But Ahmed described the claim as untrue and allayed concerns about the country’s rising debt profile.
She put the nation’s rising debt profile at 23 percent of the Gross Domestic Product (GDP), describing this as within the sustainable limit.
The Finance Minister told newsmen on Wednesday, “The issue that was raised by the Edo State governor for me is very, very sad because it is not a fact. What we distribute at FAAC is revenue that is generated and in fact distribution revenue is public information. We publish revenue generated by FIRS, the Customs and the NNPC and we distribute at FAAC. So, it is not true to say we printed money to distribute at FAAC, it is not true.
“On the issue of the borrowing, the Nigerian debt is still within sustainable limit. What we need to do as I have said several times is to improve our revenue to enhance our capacity to service not only our debt but to service the needs of running the government on a day-to-day basis. So our debt currently at about 23% to GDP is at a very sustainable level if you look at all the reports that you see from multilateral institutions.”
The allegation was raised by the Edo State Governor, Mr Godwin Obaseki who complained about the poor fiscal condition of the economy.
Thisday Newspaper reported that the Edo State Governor had said, “When we got FAAC for March, the federal government printed additional N50-N60 billion to top-up for us to share. This April, we will go to Abuja and share. By the end of this year, our total borrowings are going to be within N15-N16 trillion.”
But Ahmed described the claim as untrue and allayed concerns about the country’s rising debt profile.
She put the nation’s rising debt profile at 23 percent of the Gross Domestic Product (GDP), describing this as within the sustainable limit.
The Finance Minister told newsmen on Wednesday, “The issue that was raised by the Edo State governor for me is very, very sad because it is not a fact. What we distribute at FAAC is revenue that is generated and in fact distribution revenue is public information. We publish revenue generated by FIRS, the Customs and the NNPC and we distribute at FAAC. So, it is not true to say we printed money to distribute at FAAC, it is not true.
“On the issue of the borrowing, the Nigerian debt is still within sustainable limit. What we need to do as I have said several times is to improve our revenue to enhance our capacity to service not only our debt but to service the needs of running the government on a day-to-day basis. So our debt currently at about 23% to GDP is at a very sustainable level if you look at all the reports that you see from multilateral institutions.”
FOLLOW US
About Post Author
