Nigeria approves spending plan, lowers 2018 GDP forecast to 3.5%


By Joseph Afam with Agency Reports

ABUJA, Aug 9 – Nigeria’s government approved its medium-term expenditure framework for 2018-2020 on Wednesday, and revised its growth forecast for next year downwards, its budget minister said.

Udoma Udo Udoma, minister for budget and national planing said after a cabinet meeting that the government had approved “a slightly different” growth trajectory of 3.5 percent for next year, down from 4.8 percent it announced in its strategy paper.

He said the government was committed to exploring ways of raising additional revenues to lower the debt service burden.

Nigeria plans to refinance $3 billion worth of maturing naira-denominated short-term treasury bills with dollar borrowing of up to three years’ maturity, to lower costs and improve its debt position as the economy recovers from a recession.

Meanwhile Nigeria’s Finance Minister Kemi Adeosun said on Wednesday she was aiming to borrow less in naira and more in foreign currency. She said the government could borrow at a cost of 7 percent overseas, roughly half the interest rate it currently pays locally.


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