Former deputy governor of the Central Bank of Nigeria, Professor Kingsley Moghalu has decried the Nigeria’s current borrowing status, saying no financial organisation will grant the country debt relief.
Moghalu also said the next country’s leader would do something extraordinarily to achieve proper fiscal policy for the country.
Recall that the Minister of Budget, Zainab Ahmed, last week said the details of the 2022 fiscal performance report for January through April showed that Nigeria’s total revenue stood at N1.63 trillion while debt servicing stood at N1.94 trillion, showing a variance of over N300 billion.
Reacting on Twitter, the political economist on Monday said Nigeria’s case is weak because the government has been irresponsible.
Moghalu said: “When some of us were warning that we’re heading into a debt crisis, some official jokers in high places in this country told us “No: our debt to GDP ratio is still manageable” Now that we have earned N1.6 trillion in Q1 of 2022 and spent N1.9 trillion to service debt, effectively borrowing over N300 billion to pay our debt, the jury is in.
“We have fallen off the debt cliff. The next government in Nigeria, whoever leads it, will have to pull a rabbit out a hat to keep our fiscal boat afloat. Asset sales and debt restructuring will likely be inevitable.
“Unlike in the OBJ era, no one will give us debt relief. Our case is weak because we have been irresponsible. Simple. The issue for us as a developing country was always the ratio of debt to our revenues. Now it’s at 120%. Welcome to Nigeria.
“Anyone quoting the debt figures of the US and Japan – seriously productive economies – in relation to Nigeria’s debt crisis deserves to be flogged in the public square.”