Analyst lauds Nigeria’s plan to borrow from multilateral institutions

Borrowing from multi-lateral institution was not a bad option for Nigeria in spite of the country's debt profile, an economist said Friday.

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A higher score from a ratings agency generally means cheaper borrowing for governments
A higher score from a ratings agency generally means cheaper borrowing for governments

Tony Ejinkeonye, President of the Abuja Chamber of Commerce and Industry Limited, in an interview with reporters in Abuja, also advised the government to be cautious of the conditions inherent in accessing loans from multi-lateral institutions.

Christine Largarde, Managing Director of IMF, at the 2016 IMF/World Bank meeting announced that IMF had introduced zero interest rates on all concessional facilities till 2018.

The Nigerian government has been making efforts to borrow from multilateral organizations, such as IMF, to fund capital projects.

The analyst cautioned that efforts must be made to put into consideration the conditions associated with accessing the loan from international financial agencies.

He said it was cheery news that IMF would lend to nations at zero interest rate, noting that borrowing to fund capital projects was capable of bridging infrastructure gap in the country.

He told reporters that what mattered was the application of prudent measures in the allocation of the fund for the purpose it was intended.

He said the chamber had advised government at different fora on the possible ways to rescue the country from its current economic challenges.

According to him, some of the measures earlier advocated by the chamber included the disposal of some government assets and borrowing from multilateral institution. Enditem

Source: Xinhua/NewsGhana.com.gh

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