AAN warns escalating debts may close space for delivery of public goods

ActionAid Nigeria has raised the alarm that the rising debt profile in the country is likely to lead to the closer of fiscal space for effective delivery of public goods and services, particularly, gender responsive service, devil very.

Ene Obi, Country Manager for AAN recalled President of the African Development Bank (AfDB) warning that Nigeria’s Debt-to-GDP ratio will push debt service payments beyond the 60 per cent of federally collected revenues.

Obi who spoke at a workshop for journalists in Abuja recalled that in 2006, the Nigeria government secured a debt relief from the Paris Club.

“The key argument of the government then was the inability of the country to meet its development obligations due to its debt servicing obligations. At the time the country was indebted to the Paris Club to the tune of $36 billion” she said,

Currently, as at December 31 2020, data from the Debt Management Office (DMO) shows the nation’s debt stock at $86.39 billion, about N32.92 trillion.

“This upward trend is becoming worrisome, as the debt keeps pilling up”, she said.

She explained that if the borrowing remains unchecked, Nigeria’s efforts at dealing with its challenges of unemployment, failing social services and infrastructure deficit, amongst others will be a mirage.

“It (AAN) is also concerned that the country is not exploring other avenues such as blocking leakages from corruption, illicit financial flows, reducing cost of governance amongst others.

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