09

Aug

Debt Servicing Depleting Nigeria’s Income

To encourage investment, the Lagos Chamber of Commerce and Industry has advised the Federal and State governments to liberalize the infrastructure sector by breaking government monopolies and securitizing corporate assets through public offers. The chamber listed multiple recommendations to address the country’s fiscal and financial challenges, including the rising debt service to revenue ratio and moribund assets generating no income, in an official statement released on Sunday titled “Practical steps for boosting revenue and foreign exchange inflows” and signed by the LCCI’s Director-General, Dr Chinyere Almona. “The country’s debt situation has become concerning, with debt servicing consuming a significant portion […]

24

Jun

Debt Distress Should Be Avoided At All Costs Adesina And Okonjo-iweala Have Issued A Warning To African Leaders

Dr. Ngozi Okonjo-Iweala, former Minister of Finance and Director-General of the World Trade Organization (WTO), President of the African Development Bank (AfDB), Dr. Akinwunmi Adesina, Governor of the Central Bank of Egypt (CBE), Tarek Amer, and other regional economic stakeholders expressed concern about rising national debts yesterday, warning that the majority of countries on the continent would face default. They voiced their concerns at the African Development Bank Group’s 2021 Annual Meetings, urging African political leaders to look for alternative sources of finance and increase debt management transparency. The majority of countries are battling with sustainability, according to the experts,[…]

31

May

Nigeria Is Not In Debt, According To The DMO.

Despite the detrimental impact of Nigeria’s debt profile on the economy, the Debt Management Office (DMO) maintains that the country’s debt is still manageable because it has not yet reached the IMF and World Bank’s debt sustainability thresholds. According to it, the Economic Community of West African States (ECOWAS) has set a maximum debt limit of 70% of a country’s GDP for West African countries, with Nigeria still at 21%, while the DMO has set a 40% benchmark for external debt, with Nigeria still at 8%. The domestic debt is $53.04 billion, with the federal government owing $42.1 billion and[…]