Nigeria to Borrow N1.6trn in 2019

• Nigeria to Borrow N1.6trn in 2019

The Federal Government plans to borrow about N1.6 trillion in 2019, Ms Patience Oniha, the Director-General, Debt Management Office said on Thursday.

Oniha, who spoke at the Association of Issuing Houses of Nigeria’s semi-annual business lunch in Lagos, said the fund will be used to finance part of 2019 budget.

According to her, the government has adopted a 50:50 approach to spread its borrowing between international and local markets and will borrow about N1.6 trillion in 2019.

Oniha said the belief that the government was crowding out the private sector from the debt market was untrue.

She said, “There are issues around getting sub-nationals and corporates to come to the market.

“Corporates prefer to borrow from banks because it is faster and has lower risk than the debt market. In order for us to get these people to come to the market, we have to go back to the drawing board and plan how to tackle these issues.”

Market experts, at the event, said the state of the economy is hindering the participation of sub-national and corporate in the debt market.

Ms Yewande Sadiku, the Executive Secretary, Nigerian Investment Promotion Commission, said it is time the capital market start dictating what need to be done and when it should be done to the Federal Government.

She said, “We cannot attract capital and investment if we do not address key structural issues. Infrastructure is necessary and should be addressed. There are also material sectors that the government needs to hand over to the private sector.

“We are currently attracting investment into sectors that do not bring big numbers. As capital market operators, it is our duty to tell the government what to do; we cannot longer sit and watch. It falls down to the government to address these issues with urgency.”