Debt illustration

 

Employers Consultative Association, NECA, has admonished the federal government to implement policies to manage its debt, as the country may be heading towards a debt overhang with debt service to revenue ratio reaching 115% in 2022. The association issued the counsel during its 66th Annual General Meeting, AGM, held in Lagos. The President of NECA, Taiwo Adeniyi, stated that according to the Debt Management Office, Nigeria’s public debt has risen astronomically in recent years, reaching N46.25 trillion in December 2022; with total external debt stock stood at $41.7 billion, and domestic debt stock was N27.55 trillion. Such continuous high debts, according to him, would discourage the inflow of foreign investment, which may dampen domestic investments. He said, “Government would need to implement policies to manage its debt, such as widening its fiscal net through incentives that would encourage voluntary tax remittances; block leakages in governance; privatise or sell off government-owned abandoned and non-performing assets.” Adeniyi also commended the Bola Tinubu-led administration on the recent move towards the unification of the multiple exchange rates, which he described as a positive move for private sector development.

DailyTrust