N24.387 trillion debt: Financial expert warns FG on debt over-hang
.Says excessive borrowing not good for the economy
By Joel ThankGod (Financil Business, Abuja)
The National President, Constance Shareholders Association of Nigeria, Mr. Shehu Mikail, has advised the Federal Government to curtail its borrowing pattern, in order to avoid debt over-hang for Nigeria’s economy.
Mikail said this in a chat with Financial Business; following the data released three days ago by Debt Management Office, DMO, revealing that Nigeria’s debt currently stands at over N24.387 trillion.
According to him, “Excessive borrowing is not good for Nigeria, especially as the economy is just recovering from recession and still experiencing sluggish growth in various sectors.”
He stressed, “Economic diversification is the key. Let government diversify the economy into non-oil export sectors, in order to boost growth and earn more foreign exchange.
He added, “Infrastructure development should be given urgent attention. For the economy to achieve tangible growth, we must have effective transport system and regular power supply for businesses to thrive. The banking sector must be strong and able to finance capital projects”.
More so, the report from DMO shows that Nigeria’s total debt increased to about N24.387 trillion ($79.437billion), at end of December 31, 2018 fiscal year.
The data, which represents a year-in-year growth of 12.25 per cent, shows that Nigeria’s debt stock of 2018 is more than what the economy recorded in 2017 economic year with about N2.662 billion.