x

Nigeria’s infrastructure deficit requires borrowing to accelerate development — expert

Mr Momoh Aliyu, a financial expert says Nigeria’s infrastructure deficit requires borrowing to meet the desired revenue generation to propel accelerated development.

Aliyu said this while speaking with the News Agency of Nigeria (NAN) in Abuja on Wednesday.

Reacting on the rising debt profile of the country, he said Nigeria had a huge deficit in its infrastructure development and something must be done to fill the gap.

He explained that if getting loans were for infrastructure development, there was nothing wrong, adding that such step was a saving grace because Nigeria was at cross road and needed to seek solutions.

According to him, the infrastructure deficit has led to revenue deficit in budgeting, hence the need for external loan to meet up with the infrastructure.

“It is quite unfortunate how Nigerians are being misled by some mischievous past public office holders on this matter. Nigeria’s debt stood at 63 billion dollars as at 2015, and currently stands at 83 billion dollars.

“With the new request of about 29 billion dollars, this means the country’s  loan profile will be well over 100 billion dollars in 2020 if the loan is approved.

“The Nigeria Debt to GDP is less 30 per cent which is still within the threshold and portends not too much of a problem but of course risky.

“The risky factor is due to sustainability of the debt profile because of downward trend in our internal revenue generation.

“For the past five years, the Federal Government has been having a deficit budget financed by external borrowing. The lack of proper internal revenue generation is risky to financing the debt,” he said.

Aliyu who is also a Managing Director of Cyber1 Systems Network International noted that the challenge for the country had been loan monitoring, saying that most loans were not expended on intended purposes.

He said the 1999 Constitution as amended bestowed an audit oversight function on Public Accounts Committee (PAC) of the National Assembly.

According to him, unfortunately, this function has not been effectively carried out, hence the need for a vibrant PAC to address the issue of utilisation.

“Loan is a trend in every part of the world, the issue is what is your loan used for? Do you have a loan monitoring mechanism. Is your legislature reviewing the loan utilisation and performance? these are the challenges.” (NAN)

Hot this week

Amnesty International Urges FG to Cut Political Spending, Prioritize Economic Diversification

By Noah Ocheni, LokojaAmnesty International has called on the...

APC National Chairman, Prof. Nentawe, Empowers Traders with ₦50 Million Cash

By Israel Adamu, JosThe National Chairman of the All...

NCoS Officer, CSC Olukemi Ibikunle Wins 2025 United Nations Award

By Achadu Gabriel, KadunaA Chief Superintendent of Corrections (CSC)...

Nasarawa Governor, Ministers Commend NCDC at Policy Review Retreat in Lafia

By Israel Adamu, JosThe Minister of Regional Development, Engr....

Olawepo-Hashim Accuses APC Elements of Orchestrating Smear Campaign Ahead of 2027 Elections

By Achadu Gabriel, KadunaFormer presidential candidate Dr. Gbenga Olawepo-Hashim...

WHO Eyes 2030 As Year For Achievement of Refractive Eye Care For All

By Joyce Remi-BabayejuAs the world marks the 2025...

FERMA Flag-off ‘Operation Safeguard the Road’ in Kogi

By Noah Ocheni, LokojaThe Managing Director/Chief Executive...

Governor Ododo Bags Another National Honour in Education

By Noah Ocheni, LokojaKogi State Governor, Ahmed Usman Ododo,...

Governor Ododo Congratulates Prof. Joash Amupitan SAN on His Appointment as INEC Chairman

By Noah Ocheni, LokojaKogi State Governor, Alhaji Ahmed Usman...

Otuoke University Staff Protest FG’s Failure to Meet Union Demands

By Amgbare Ekaunkumo, YenagoaThe Joint Action Committee (JAC) of...

Related Articles

Popular Categories

spot_imgspot_img