(Ecofin Agency) - The failure by the Federal Government of Nigeria to generate sufficient income to fulfil its obligations has resulted in the country borrowing from international financial institutions to meet demands, the Minister of Finance, Kemi Adeosun (photo) has revealed.

According to her, the realities currently on the ground had made it vital for Nigeria to get a loan if it must survive the economic crisis.

“This is my requirement every month: salaries, statutory transfers every month, I need N210bn every month. Debt, not the debt that we are planning to take, but the inherited debt; I need N120bn just to service it. So, every month, I need N330bn. Just to give you an idea of where we are today,” she explained.

Last year November, the Nigerian Senate dismissed President Muhammadu Buhari’s 2016 to 2018 external borrowing plan by which $29.9bn was requested.

The 2017 budget had a huge shortfall of N2.36tn, an amount the President said would be funded through borrowing, Punch news reports.

While a lot of people had criticized the borrowing plan, the Finance Minister said the country has no option than to borrow since the price of oil has become very low.

“So, when we start the argument, should we borrow, should we not? The truth is that we have no choice. If you are waiting for the oil price to recover, the prognosis is that it’s not going to go back to $110 per barrel any time soon,” she added.

Anita Fatunji