Nigeria’s Economy Cannot Endure N35.46 Trillion Debt

Earlier in September, the Debt Management Office (DMO) announced that Nigeria’s total public debt (federal and state governments) rose to N35.46 trillion at the end of the second quarter (Q2) of 2021 — an increase of N2.3 trillion in three months.

Lai Mohammed, minister of information and culture, had defended the federal government’s borrowing plans, saying the loans are being used to construct critical infrastructure for the benefit of Nigerians.

“We applaud the mammoth infrastructural development being carried out by this administration since inception; however, it is our belief that more can be achieved with the huge natural, human resources and capabilities available within the economy, if managed appropriately,” Olawale said.

“Not to say the least, the debt profile currently at N35.5 trillion is worrisome and unsustainable for an economy like ours.

“The Association is more concerned with a growing economy, where every economic concern generates sufficient revenue that could pay-off reasonably its debt provisions with less impact on its future earnings and accumulates huge foreign reserves.

“As infrastructural provision is critical to any development for any economy with the robust and friendly business environment, we call for more collaborative efforts in the form of Public-Private Partnership, PPP, in addressing the huge infrastructure deficits, in a very short term and at a cheaper rate.

“It is our belief that implementing the PPP initiative in provision of the country’s critical infrastructure, decent and sustainable jobs will be provided, and desirable number of people will be lifted from the poverty rank even before the desired date of 2030.

“More so, there is need to review the rising cost of governance and block the leakages in governance, which is becoming a clog to development.”