‘Nigeria, Not a Debt Risk Nation’, Discussants

The current perception that Nigeria is a high-risk debt nation that could default on its debt repayment, has been debunked by participants at this year’s Capital Market Solicitor’s Association annual business summit.

Speaking on the theme, “Recent Development in Sub- Saharan African Sovereign Debt: Implications for Nigeria’’,  the Keynote Speaker, Razia Khan, said that Nigeria is actually on the pathway to a strong economic recovery.

She stated that, years back, the nation along with some African countries like Zambia and Egypt was on the path to debt crisis, with debt rescheduling and the attendant cost looming. However, averting the debt crisis was a commendable option that the nation took.

Khan hailed the current economic reforms, which she said have positioned the country on the way to economic reforms.

Also Speaking at the event, the Director General of the Debt Management Office, Mrs Pat Oniha, stated that because Nigeria has been running its budget in deficit, the nation’s debt profile has grown rapidly over the years. She also noted that Nigeria’s internally generated revenue has been very low, while the cost of servicing our debt is very high. Oniha, however, stated that the nation’s debt is well spread and structured, in such a way that Nigeria will not need to restructure the repayment conditions or default in its payment.

Mr Charlie Robertson, the Group Chief Economist of Renaissance Capital Africa, on his part, stated the need for the nation to develop the local market and reduce the population.

He stated that while the nation’s spending on health, education, and Agriculture has been reduced to next to nothing, these three are actually important for the nation to develop economically.

In his welcome address, the Chairman of the Capital Market Solicitor’s Association, Mr Chike Obianwu, stated that recent events in the debt profile matters of Ghana, Congo, Egypt, and Argentina have become a matter of concern to countries like Nigeria, and Lawyers in the capital market in particular, hence, the theme for discussion.

Other participants who spoke in the same direction include Mr David Alexander-Gardner, Johannes Juette, Stuart Martty, and Dr Godfred Bokpin.