President Muhammadu Buhari has urged Nigerians to look beyond the country’s rising debt, insisting that without investing in infrastructure, the road out of poverty will be much tougher.
President Buhari who disclosed this in a statement, urged Nigerians to look at the assets and investments that are financed by these debts and not just the country’s debt profile.
According to him, his administration had doubled Nigeria’s stock of infrastructure to Gross Domestic Product (GDP) from about 20 per cent to more than 40 per cent, adding that some of the projects are commercially self-liquidating.
He said Nigeria was able to achieve this despite the plunging of the global oil prices to almost zero at some point, the recession that was experienced by the country, the unexpected outbreak of the deadly coronavirus pandemic, and the global effects of the ongoing war between Russia and Ukraine.
The pronouncement by the president is coming against the backdrop of criticisms over Nigeria’s rising debt profile, most of which are used to finance these infrastructures, by economic and financial experts as well as international financial institutions like the World Bank and IMF.
“In eight years, I am proud to say that we have doubled Nigeria’s stock of infrastructure to GDP from about 20 per cent to over 40 per cent, and that is no small undertaking.
“This happened when global oil prices plunged to almost zero, when we encountered a recession that was not predicted, when we dealt with a pandemic that was unforeseen, and when we are still grappling with the global effects of an ongoing war in Europe.
‘’So, as we look at Nigeria’s debt profile, I urge us to also look at the assets and investment profiles, some of which was paid for by debt and some by investment income.’’
He said, “The wealth and prosperity of many nations, especially post-war Europe, was built largely on infrastructure and on debt redeemed over decades. Some of the projects are commercially self-liquidating. Without investing in infrastructure, the road out of poverty is a much tougher one.’’
The country’s external debt stock – what it owes non-residents – was US$41.69 billion in 2022.
Meanwhile, with the recent borrowing spree by the federal government and the National Assembly’s approval of the Central Bank of Nigeria’s Ways and Means advance to the federal government, the Nation’s external and internal wealth could have surpassed N80 trillion.