Federal Government Spends N600bn Annually On Local Debts – REP

[Shola Sholaz]

Chairman, House of Representatives Committee on Finance, Dr. Abdulmumini Jibrin, said yesterday that the Federal Government spends N600 billion annually to service local debts owed banks.
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Jibrin made the revelation at the 2013 international youth day public lecture organised by the African Centre for Media and Information Literacy, AFRICMIL, in Abuja. Jubrin, who delivered a lecture, entitled "Nigeria at 53:
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The Role and Challenges of Legislators in Making the Nation's Youth Resourceful and Self Reliant", said a situation where the Federal Government borrowed all the money available in the banks made it difficult for youths of productive ages to source for loans from commercial banks because of high interest rate caused by government borrowing.
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He said: "Last year, the deficit was so large because what the executive arm of government does is that in budget deficit, they borrow money from domestic banks to balance their budget and we said, increase the benchmark.

[Folami David]

We owe a lot in this country so I'm really not surprised @ all just yet. It's something we've gotten used to already!