President Yar’adua expresses concern over domestic debt, local empowerment strategies
By
Jun 13, 2007, 17:59

President Umaru Musa Yar’Adua has expressed concern over Nigeria’s rising domestic debt, as he drew attention to the huge domestic debts of some states.

He made the comments after being briefed on the state of the nation’s economy by Central Bank of Nigeria Governor, Professor Chukwuma Soludo at the State House June 13.

Mr. President’s words: “I am concerned about the rising domestic debt and we must come up with a strategy to stem it and reduce its volume. The Central Bank must take appropriate steps to check the tendency of the commercial banks to finance the social sector to the detriment of the real sector.”

Worried that some states will spend the next four years managing only debt, President Yar’adua urged banks to direct their excess liquidity to the productive sector of the economy rather than lending to governments and waiting for monthly allocations to collect their money.

President Yar’Adua also expressed serious concern at the state of the educational sector. He was particularly worried that products of or institutions were not trained or skilled enough to take charge of the commanding heights of the economy.

In a separate meeting with the NAPEP National Coordinator, Dr. Moses Kpakol, the President challenged NAPEP to provide projects that will enable beneficiaries of the programme produce and create marketable products.

He also spoke about the need for the private sector, which is the beneficiary of the reforms, to make credit available to the poor at little or no interest rates.

Earlier, Dr. Kpakol had spoken about the need for sound economic and fiscal policies, rapid infrastructural development and a funding partnership with the private sector and states for NAPEP to succeed.

Related links:

Empowering the private sector through settlement of domestic debts

Nigeria finally free of Paris club debt – Obasanjo

Nigeria exits Promissory Note component of London debt

FG pays $1.4bn out of the London club debt

© Copyright 2006 nigeriafirst.org