As the federal government plans to borrow from the domestic and external markets to finance the deficit in the draft 2022 budget, president, association of capital market academics of Nigeria Prof. Uche Uwaleke, has advised the government to always tie their loans to self-liquidating projects.
Uwaleke said the federal government runs a risk of diverting borrowed funds to unproductive projects if it fails to tie such borrowed funds to specific projects. The federal government is proposing over N6 trillion deficit financing in the 2022 budget that was recently presented to the National Assembly.
The first professor of capital market in Nigeria said infrastructure financing will continue to pose a major challenge to the government except the private sector is put on the driving seat. He made the remarks at a press conference by ACMAN on the 2022 budget proposal and sundry issues. The association commended the innovative financing schemes proposed in the 2022 budget including public private partnerships and sovereign green bonds programme.“We advise the government to take full advantage of opportunities in the Nigerian capital market to address the infrastructure deficit in the country.
ACMAN also advised the government to identify more suitable assets for partial privatisation and execute the process through the capital market.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.