The Chairman of the Centre for Economic Policy and Development Research, Prof. Evans Osabuohien, has said the rising debt profile of the country is destroying the economy.
The professor of economics, who expressed shock at the Federal Government’s recent plans to borrow $22.7bn, said government must count the cost of its continuous borrowing habit.
He spoke on Tuesday in a statement announcing a national budget roundtable and panel discussion.
The event, scheduled for Friday at the Covenant University, Ota, is themed, ‘The Art of National Budgeting and Nigeria’s Debt Profile: Sectoral and Demographic Implications.’
He said, “One of the highlights of the joint sessions of the International Monetary Fund and the World Bank in October 2019 was that the debt profile of many developing countries, including Nigeria, is rising.
“The implications of such rising debt can be far-reaching and will be different across developing countries, especially in Africa due to a number of factors such as structural rigidities, weak economic diversification, institutional weaknesses, among others.
“Despite all these, it is shocking to know that the Federal Government of Nigeria is planning to borrow $22.7bn. This will further increase the volume of Nigeria’s debt.
“It is imperative to underscore that despite the budget deficit over the years, the cost of governance remains very high in Nigeria. For example, over the last years, over 22 per cent of total expenditure is usually earmarked for debt servicing, and unfortunately, not much impact is seen on ground in terms of improved facilities and welfare for the citizenry.”
Osabuohien said the roundtable discussion would sensitise Nigerians to the various implications of the country’s rising debt profile.
According to him, the event will feature panellists from government agencies, the private sector and the academia.
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