Petroleum workers in Nigeria have warned about Nigeria’s rising debt profile, which recently hit N77 trillion, after lawmakers approved the securitisation of the CBN Ways and Means loans.
They insisted that borrowed funds should not be used for consumption, but channelled into productive ventures and infrastructural development.
This was disclosed by the president, Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo at the 7th triennial national delegates’ conference of the association.
Osifo, said the debt profile as at the first quarter of 2023 was mind-blowing and warned that for the 2023 budget, FG will be using all the monies generated as a country in servicing debt.
He noted that poor implementation of fiscal and monetary policies and policy inconsistencies worked against the economic growth and development of the country.
“According to the Debt Management Office, Nigeria’s total public debt profile, representing domestic and external debt stocks of the 36 state governments and the FCT, currently stand at N77 trillion.
“This is quite alarming, mostly when you compare the cost of servicing this debt to the revenue generated by government per annum.
“In the 2023 budget for instance, we will be using virtually all the monies generated as a country in servicing our debt.
“This is a calamity of the highest proportion unless we do all we can to increase the revenue base.
“While we do not condemn borrowing, we insist that borrowed funds should not be used for consumption, but channelled into productive ventures and infrastructural development,’’ he said.
He urged the incoming government to seek other approaches to revenue generation, citing that the current state of the economy needs a steady growth in GDP; and increased access to employment and diversification of the economy.
