NAN-HE-18
Loan
By Kingsley Okoye
Abuja, Oct. 11,2016 (NAN) The Abuja Chamber of Commerce and Industry Limited (ACCI) has advised the Federal Government to be cautious of the conditions inherent in accessing loans from multi-lateral institutions.
The President of ACCI, Mr Tony Ejinkeonye, gave the advice in an interview with the News Agency of Nigeria (NAN) in Abuja on Tuesday.
The News Agency of Nigeria (NAN) recalls that Christine Largarde, Managing Director of IMF, at the 2016 IMF/World Bank meeting announced that IMF had introduced zero interest rates on all concessional facilities till 2018.
NAN also recalls that the Federal Government has been making efforts to borrow from multilateral organisations, such as IMF, to fund capital projects.
Ejinkeonye said in spite of Nigeria’s debt profile borrowing from multi-lateral institution was not a bad option, especially if the loan was designed to executive capital projects.
He, however, cautioned that efforts must be made to put into consideration the conditions associated with accessing the loan from international financial agencies.
“Before now, government has already positioned itself to borrow from multi-lateral institutions like IMF to fund capital projects in the country.
“And Nigeria’s debt profile is one of the lowest compared to some countries of the World,“ Ejinkeonye said.
He said it was cheery news that IMF would lend to nations at zero interest rate, noting that borrowing to fund capital projects was capable of bridging infrastructure gap in the country.
He said what mattered was the application of prudent measures in the allocation of the fund for the purpose it was intended.
“What really matters is financial discipline required in the administration of the fund in the implementation of the projects for which the loan is taken.
“ Government must ensure due process and transparency and also ensure that finances are channelled to critical sectors that will promote economic growth and development for the country and her citizens“.
He said ACCI had advised government at different fora on the possible ways to rescue the country from its current economic challenges.
According to him, some of the measures earlier advocated by the chamber include the disposal of some government assets and borrowing from multilateral institution. (NAN)
KC/GOM/JCE
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Edited by Gregory Mmaduakolam/Chukwudi Ekezie