The Debt Management Office (DMO) has warned President Muhammadu Buhari’s administration to stop piling up debt which has risen to N42.84 trillion ($103.31 billion) at the end of the second quarter of 2022.
The Director-General of Nigeria’s Debt Office, Patience Oniha, said government’s priority should be improving revenue from oil and non-oil sources.
Oniha made the statement during a workshop for members of the Senate Committee on local and foreign debts and the House of Representatives Committee on Aid, Loans, and Debt Management.
She explained to the Nigerian legislature on Thursday that borrowing at this juncture of our national history would attract high interest rates as international and domestic debt markets have become tighter on liquidity.
The DMO boss said there’s the need for the Federal Government to ‘rationalise’ expenditure and ramp up revenues. According to her, disbursing the borrowed funds into revenue-based projects will provide the much needed capital to service existing loans.
“Priority should be less on borrowing and more on revenue from oil and non-oil sources.
“Nigeria’s low revenue base, compounded by dependence on crude oil, resulted in deficits over the past decades,” Oniha explained.