By Felicia Udeji
In spite of mounting concerns over the huge level of the Nigeria’s public debt as a country, the Federal government has increased borrowing from domestic investors, adding to Nigeria’s already massive debt burden. This surge in borrowing will likely worsen the country’s economic woes and affect the average Nigerian’s standard of living.
In just four months, FG borrowed N10.85 trillion from domestic investors, increasing Nigeria’s total public debt to N144.66 trillion. This debt burden is now over 52% of the country’s GDP.
The increase in borrowing will have severe implications for Nigerians. Higher taxes might be imposed to service this debt, reducing disposable income for individuals and families. Additionally, FG’s debt servicing costs consume a significant portion of its revenue, leaving less for essential services like healthcare, education, and infrastructure.
As a result, economic instability may ensue, making it harder for businesses to thrive and for Nigerians to access credit. Furthermore, excessive borrowing can lead to inflation, eroding the purchasing power of Nigerians and increasing the cost of living.
Speaking in the issue, The International Monetary Fund (IMF) has warned Nigeria about its high debt levels, advising the government to reduce spending and prioritize essential services. Analysts also predict that the country’s debt-to-GDP ratio might worsen if FG continues to borrow heavily.
It advised President Tinubu to mitigate this crisis by improving revenue generation through taxation, oil production, and other means. Also ensuring to prioritize essential services like healthcare, education, and infrastructure.
It’s the hope of the average Nigerian that the FG will adhere to these advice and others to take quick measures to mitigate the crisis and improve the standard of living for Nigerian
Nigeria’s debt crisis is a ticking time bomb. If FG doesn’t take corrective action, the consequences will be felt by every Nigerian. It’s time for the government to prioritize the welfare of its citizens and take bold steps to address the country’s economic challenges.