Nigeria’s N35trn Debt Burden: Rewane cautions FG against reckless borrowing

September 18, 2021

1.1 min readCategories: News

The public outcry against President Mohammadu Buhari’s request   for $4.179 billion additional borrowing intensified yesterday with another member of the Presidential Economic Advisory Council (PEAC), Mr. Bismarck Rewane, supporting the position of the Council’s  Chairman, Professor Doyin Salami, stressing that every Nigerian should be concerned about the nation’s huge profile, which increased further by N2.36 trillion or 7.13 percent to N35.47 trillion in the second quarter of the year (Q2’21).

Salami,  in a presentation titled,  “The State of the Economy,”  expressed concern about the nation’s debt profile. He stated that the country’ N35.47 trillion public debt was unsustainable even though the country’s debt-to-Gross Domestic Product (GDP) ratio at 35 per cent seems comfortable.

Supporting Salami’s position, Bismarck Rewane, who is also the Chief Executive Officer, CEO, Financial Derivatives Company (FDC) in an exclusive interview  with Saturday Vanguard, averred   that every Nigerian should be concerned because the FG is taking a risk with the borrowing.

Furthermore, Rewane cautioned against reckless borrowing, stressing that  continuous borrowing  if not complemented with increase in government revenue, will push the country towards a ‘fiscal Cliff’.

Consequently, he recommended that the FG should adopt the model of  project-specific borrowing, which can have a measurable and objective impact on the economy, as against the current practice of borrowing to fund anything.

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