The Organised Private Sector (OPS), has challenged the Federal Government to give a proper account for over N35 trillion accumulated debt in the last 10 years.
They argued that just over a decade after Nigeria got debt relief from the Paris Club, the nation was again, plunged neck-deep into another round.
The Guardian gathered that the nation’s debt stock has continued to rise progressively from N8.32 trillion in September 2013, to N22.7 trillion in March 2017, and N33 trillion in March 2020.
While the Senate raised an alarm in March over the N33 trillion, it still went ahead to approve a loan request of $22.7billion, and another $5.5billion in June.
The OPS, under the auspices of the Nigeria Employers’ Consultative Association (NECA), averred that borrowing is a source of financing developmental projects and running economies, on the condition of transparent and judicious use of the loans for intended projects.
However, they expressed concerns over a 180 per cent leap in borrowing within 10 years, and more worrisome still is the lack of evidence that the borrowed funds are being properly utilised.
At NECA’s 63rd yearly general meeting yesterday, its President, Taiwo Adeniyi, who admitted while the debt-to-Gross Domestic Product (GDP) ratio is within the threshold, it is clear that the debt-to-revenue ratio is unsustainable, and charged the government to urgently diversify and strengthen its revenue base to avoid further shocks as presently being experienced.
