The Federal Government of Nigeria has hinted that it will source for funds outside Nigeria to help fund its 2016 budget deficit worsened by dwindling oil prices According to the minister of finance, Mrs Kemi Adeosun, the government will borrow more abroad in foreign currencies than domestically.
She stated that the decision is geared towards taking advantage of lower interest rates obtainable in foreign countries and to allow Nigerian banks lend to small businesses.
Explaining further, Adeosun said the government wants to switch its debt mix so that 40 percent of loans would come from abroad, compared with 16 percent now, and extends its debt maturity profile.
She revealed that the government plans to borrow as much as $10 billion from debt markets, with about half of that coming from foreign sources.
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