In a recent interview shared by Silverbird N24, CEO of Economic Associates, Dr. Ayo Teriba, raised concerns over Nigeria’s borrowing strategy and the management of domestic financial resources.
Speaking on the nation’s fiscal direction, Teriba questioned the rationale behind continued external borrowing despite the presence of idle funds within the country’s financial system. He stated, “We are borrowing money from foreign banks, but you have $20 billion sitting in the CBN coffers as CRR balances.”
According to him, this situation reflects a disconnect between government financing decisions and available local liquidity. Teriba explained that while borrowing is not inherently wrong, especially when used to fund long-term capital projects, the government must first optimize internal resources before seeking funds abroad.
He emphasized that the Central Bank-held cash reserve balances, which earn little or no interest, could be better utilized to support economic growth and reduce reliance on foreign debt. By channeling such funds into productive investments, the government could ease pressure on external borrowing and strengthen the domestic economy.
Teriba further noted that a balanced financing approach, combining both domestic resources and external funding, would improve fiscal sustainability. He urged policymakers to rethink current strategies and ensure that available local funds are efficiently deployed to support national development goals….See More
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