Expert Faults Report on Nigeria’s Debt

Ndubuisi Francis in Abuja

A development economist, Mr. Christopher Amadi has faulted reports that Nigeria’s public debt stock would rise to N50 trillion by 2023 due to borrowings in the recently launched National Development Plan (2021-2025).

In a paper made available to THISDAY, Amadi argued that while the government would need to borrow to contribute to the implementation of the plan, for the purpose of clarity, it provides for significant financing by the private sector as N298.3 trillion or 89.7 per cent of the total funding was expected from the sector.

He said: “It is unfortunate that these reports present a somewhat shallow picture of the plan by focusing on the borrowing needed to achieve the objectives and targets of the plan and ignoring the policies, initiatives and actions included in the plan.

“It will be recalled that the National Development Plan is a medium-term economic strategy document which seeks to achieve vital developmental goals through significant investment in infrastructure, job creation, human capital development, amongst others.

“The plan is a more robust programme intended to succeed the Economic Recovery Growth Plan (2017-2020).

Whilst the government will need to borrow to contribute to the implementation of the Plan, for the purpose of clarity, the plan provides for significant financing by the private sector as N298.3 trillion (89.7%) of the plan’s total funding is expected from the private sector.”

According to him, the focus of certain media analysts on the public debt stock and borrowing in the Plan seem like an attempt to demean it while also disregarding what he described as laudable efforts by the government to grow revenues and diversify the economy.

He stressed that the plan’s objectives had been extensively detailed, while financing has been explained to show that it goes beyond mere borrowing, which was implied in the media reports.

“The media is encouraged to continue to bring awareness to members of the general public on all activities, initiatives and policies of the Nigerian government and its agencies in a balanced manner to drive the necessary engagement and aid positive implementation where required,” Amadi added.