The resident representative of the Nigerian office of the International Monetary Fund, Ari Aisen, has urged that revenue and expenditure should be the main areas of focus in order to address Nigeria’s debt problems.
The Punch reported that the IMF said this while encouraging Sen. Bola Tinubu’s new administration to take steps to broaden the country’s source of income.
Aisen made this statement during a virtual discussion on Nigeria’s debt position. He also counseled the next administration to significantly reduce its reliance on debt to pay for expenses.
He said that the Federal Government was spending more than it was actually bringing in through taxes, which is why the debt issue had gotten worse.
“Fiscal discipline is truly the key. People shouldn’t consistently spend more than they earn because that is unsustainable.
“Eventually, some people will come and ask for their money back, and some will refuse to give further loans,” he said.
According to Aisen, it is essential for countries to be able to rely increasingly on their revenue to pay for their own expenses.
He stated, “That is the independence and the autonomy on which we desire to see our member countries thrive.”