Nigerian Employers See Danger In Government's Rising Debt
It is no longer news that Nigerian government has gotten into so much debt over the past three and half years.
Warnings have come from several quarters, but the government has continued to borrow, saying Nigerians have nothing to fear.
But not everyone is satisfied with the government’s assurances. Part of those include Nigeria’s private sector employers under the aegis of Nigeria Employers’ Consultative Association, NECA.
NECA says Nigeria’s increasing debt burden could have negative implications on developmental capacity of the economy.
The Director General of NECA, Timothy Olawale, was quoted as saying at a forum on Tuesday in Lagos that the debt burden was worrisome and needed to be checked.
Olawale said that the debt burden was worrisome because about 25% of the 2019 budget size of 8.8 trillion naira amounting to 2.140 trillion naira was going into servicing of debts.
“’The real sector should be able to access funds which should ultimately lead to increased employment opportunities within the economy.
“Latest figures released by the Debt Management Office (DMO), showed that government’s domestic debt profile rose to 15.814 trillion naira in September 2018 from 15.629 trillion naira in June, 2018 (1.19% increase),” Olawale said.
According to him, the amount proposed for debt serving in the 2019 budget could have a negative effect on the developmental capacity despite government’s financial managers’ argument that the rate of increase is within a manageable limit.
Don't forget to share this story with your friends.