Economic analysts have called on the federal government to restructure the finances of Nigeria such that the share of the country’s revenue that goes into debt servicing is reduced to the barest minimum.
They also cautioned the government on the sustainability of the nation’s debt obligation.
Last year, Nigeria spent N1.797 trillion servicing its domestic debt and another $1.72 billion to pay interest on its external debts. Analysts say this may pose sustainability challenges for the country. As at December 31, 2018, Nigeria’s debt profile had risen by N2.66 trillion from N21.725 trillion as at December 2017 to N24.387 trillion. Close to 70 per cent of the 2018 revenue had been spent on servicing the nation’s debt.
According to Economist Intelligence Unit, there is need for structural reforms in the public finances. The EIU stressed the need for government to ensure debt sustainability over the long term by broadening the tax base to reduce the amount of revenue absorbed…
