Petroleum workers in Nigeria have cautioned about Nigeria’s expanding debt profile, which recently reached N77 trillion after parliament allowed the securitization of CBN Ways and Means loans.
Nairametrics reported that they emphasized that borrowed money should not be used for consumption but rather should be put toward business endeavors and the construction of infrastructure.
This information was released on Thursday by the president of the Petroleum and Natural Gas Senior Staff Association of Nigeria, Mr. Festus Osifo, who also issued a warning that the FG will be using all of the revenue earned as a country to pay off debt for the 2023 budget.
Osifo expressed concern over Nigeria’s N77 trillion public debt during his speech at the association’s 7th triennial national delegates’ conference. He cited Nigeria’s expanding debt profile as a reason for concern.
He also emphasized the FG’s inconsistent and poor application of fiscal and monetary policies, which, in his view, hinders Nigeria’s economic growth and development.
The entire public debt profile of Nigeria, which includes the domestic and external debt portfolios of the 36 state governments and the FCT, is currently N77 trillion, according to the Debt Management Office.
“This is rather concerning, especially when you consider how much it will cost to service this debt in relation to the annual revenue the government receives.”
“While we do not condemn borrowing, we insist that borrowed funds be channeled into productive ventures and infrastructure development rather than consumption.”
He advised that the new administration looks for alternative methods of raising money, arguing that the status of the economy at the moment requires sustained GDP growth, greater access to work, and economic diversification.
“We applaud the government’s continuous efforts in the agricultural sector and anticipate that the pace will be maintained throughout the full value chain.
“The initiatives should be repeated in a variety of industries, including solid minerals, tourism, and technology.
He added that the trade-offs generated by numerous exchange rates hurt the economy, so the incoming administration must make an effort to address the problem.
We need to stop boosting government activities through the use of “Ways and Means,” as this causes inflation because it isn’t supported by value creation.
