Minister of Finance, Kemi Adeosun has said oil prices are not returning to $110 per barrel, leaving Nigeria no choice than to borrow.

Adeosun spoke at the 14th Daily Trust Dialogue in Abuja on the theme ‘Beyond recession: Towards a resilient economy’.

Adeosun said the 2017 budget has a deficit of N2.36 trillion, which could only be financed through borrowing.

“Where are we today and what’s the problem? This is my requirement every month: salaries, statutory transfers every month, I need N210 billion every month,” Adeosun said.

“Debt, not the debt that we are planning to take, but the inherited debt; I need N120 billion just to service it. So, every month, I need N330 billion

“Just to give you an idea of where we are today, last month’s FAAC allocation was N310 billion. So, the federal government got about N140 billion; but I must cover N330 billion a month before we can do a single capital project.

“So, when we start the argument, should we borrow, should we not? The truth is that we have no choice. If you are waiting for the oil price to recover, the prognosis is that it’s not going to go back to $110 per barrel any time soon.”

The minister said the government can only boost the economy through low-cost funds.

Azeez