HighlightTop StoryTrending Story

Nigeria’s N35.5trn debt, humongous rise in FG’s expenditure profile worry NECA

260

 

Nigeria’s rising debt profile and financing infrastructure deficit with foreign loans has been criticized by the Nigeria Employers Consultative Association (NECA), calling it sustainable.

NECA said rather than for the Buhari administration to continue to take loans to finance “critical infrastructure”, it should adopt the Public Private Partnership (PPP).

According to the Director-General of NECA, Dr Timothy Olawale,, the nation’s rising debt profile is not sustainable as the government is committed to addressing the huge infrastructure deficits in the country.

Persecondnews recalls that last week, Information and Culture Minister, Alhaji Lai Muhammed, had justified the Federal Government’s borrowing, saying it has a lot to show for loans taken so far.

He described those criticizing Buhari’s administration for borrowing as insincere.

“Adopting the PPP approach to financing infrastructure deficit is the best in a very short term and at a cheaper rate.

“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.

‘’Not to say the least, the debt profile currently at N35.5trillion is worrisome and unsustainable for an economy like ours,” Olawale said.

The Director-General also said NECA is more worried about the sharp rise in expenditure profile of the government against marginal increase in the nation’s revenue.

“We are more concerned by the unprecedented and humongous rise in the expenditure profile vis-à-vis the revenue, which grew by over 102% between 2015 and 2021 with a trifling rise of revenue by only 15% within same period from both non-oil and oil revenue.

‘’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 accumulate huge foreign reserves.

“As infrastructural provision is critical to any development for any economy with 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 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,” Olawale said.

Leave a comment

Related Articles

N1.3trn fraud: EFCC arrests, grills ex-Delta Gov. Okowa

A former Delta State Governor, Ifeanyi Okowa, has been apprehended by the...

Breaking: Pres. Tinubu orders release of #EndBadGovernance underage protesters

President Bola Tinubu has ordered the immediate release of all minors arrested...

Equatorial Guinea government official embroiled in sextape scandal

Mr. Baltasar Engonga, Director General of the National Financial Investigation Agency (ANIF)...

Just in: Seven new ministers take oaths of office

President Bola Tinubu has sworn in seven newly appointed ministers, directing them...

CAF ruling against Libya: Nigerian govt. promises to protect its citizens in Libya

Nigeria’s Ministry of Foreign Affairs has reaffirmed the federal government’s commitment to...

Polaris Bank wins “Best Mobile App” award at Digital Jurist Awards 2024

For its commitment to digital innovation and excellence, Polaris Bank has again...

Updated: After six years of injustice, Nigeria’s ex-Chief Justice, Onnoghen, finally gets justice

The Court of Appeal, Abuja Division, on Monday, overturned the conviction of...

Flood sacks 4 Anambra council areas as Soludo activates 27 IDP camps

By Emmanuel Ndukuba, Awka Floods have devastated four local government areas in...

Just in: Appeal Court acquits ex-CJN, Onnoghen, orders FG to unfreeze his account

The Court of Appeal sitting in Abuja on Monday discharged and acquitted...

Four-month salary: NASU, SSANU secure irrevocable commitment from FG, suspend strike

After a six-day strike, the Joint Action Committee (JAC) of non-teaching staff...

Three radio stations in Abia destroyed by mysterious fire

A mysterious fire has hit three radio stations in Abia in Abia...

Seven new ministers for inauguration on Monday, Nov. 4

President Bola Tinubu will preside over the oath-taking of seven new ministers...

Youth shot dead for playing football near VIP’s house

A 70-year-old man, Mr. Stephen Irobunda, has escaped a mob action in...

Renowned Nigerian filmmaker, director Dimeji Ajibola is dead

Dimeji Ajibola, the acclaimed Nigerian filmmaker behind the popular series Shanty Town,...

Just in: UK Conservative Party elects former Business Secretary Kemi Badenoch as new leader

Former British Business Secretary Kemi Badenoch has emerged as the new leader...

Demolition of Abuja N200bln properties: Restrain Wike, Estate Developers Beg Pres. Tinubu

President Bola Tinubu has been urged to intervene in the alleged demolition...

ECOWAS, Nigeria, Morocco, Mauritania Commit to $26bln African Atlantic Gas Pipeline Project

“The project, conceived in 2016 during King Mohammed VI of Morocco’s visit...

FirstBank’s retired CEO, Adeduntan, gets presidential commendation

Impressed with his exemplary career trajectory and transformative leadership, President Bola Tinubu...

#EndBadGovernance protests: AGF to Police: Transfer casefiles of 72 defendants to my office

The Attorney General of the Federation (AGF) and Minister of Justice, Prince...

NAGAFF Taps NPA MD, Dr. Abubakar Dantsoho, as Keynote Speaker for Silver Jubilee Anniversary

The National Association of Government Approved Freight Forwarders (NAGAFF) has announced Dr....