Group says Nigeria’s debt burden remains major challenge facing government

From:Femi Oyelola, Kaduna

A group under the auspices of Africa Network for Environment and Economic Justice (ANEEJ) has said Nigeria’s ballooning debt burden remains one of the major challenges the new government is facing.
The Executive Director of ANEEJ, Rev. David Ugolor, asserted this during a two-day National Debt Conference with the theme; “Repositioning Nigeria for a debt-free Africa,” organized by
Africa Forum and Network on Debt and Development, (AFRODAD) with support From
Bill & Melinda Gates Foundation.
According to him the Debt Management, Office of Nigeria disclosed recently that Nigeria’s total public debt hit N87.38 trillion at the end of the second quarter of 2023.
He explained that the figure represents 75. 29 percent compared to N49.85 trillion recorded at the end of March this year, saying this is quite disturbing because most of Nigeria’s revenue is now being channelled to debt servicing obligations at the peril of basic social services in the country.
Rev. Ugolor added that this becomes even more worrisome when viewed against the backdrop that Nigeria remains the world poverty capital designated by the World Poverty Clock report of 2023.
The ANEEJ Executive Director stressed that Nigeria’s deepening debt crisis does not occur in isolation, noting that high fiscal deficits in many African countries have made it difficult to build resilience and tackle the multiple shocks (i.e., Covid-19 pandemic, natural disasters, and insecurity occasioned by terrorism and banditry). As of last year, eight African countries were in debt distress, and thirteen were at high risk of debt distress.