The President of the Senate, Sen. Godswill Akpabio, has raised concerns about Nigeria’s current trajectory of borrowing, emphasizing that it cannot be allowed to continue without checks. This statement came during the inauguration of a five-day interactive session on the 2024-2026 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), involving all revenue-generating agencies of the government.
Akpabio underscored the significance of enhancing revenue generation as a pivotal strategy to address the borrowing challenge. Additionally, he urged stakeholders to devise short-term measures to mitigate potential adverse effects following the removal of the Petroleum Subsidy, particularly concerning its impact on the Nigerian populace.
Collaboration on Fiscal Policies
Speaking at the event, Sen. Sani Musa, the chairman of the joint finance committee, highlighted that the meeting provided an opportunity for legislators to comprehensively review all documents related to revenue generation and sources of revenues. He stated, “Our role as legislators in shaping the MTEF/FSP is not only a constitutional obligation but a moral imperative to our constituents who look to us for guidance and leadership in safeguarding their economic interests.”
Musa emphasized the necessity of unbiased deliberations focused on the welfare of the Nigerian people. He expressed the belief that through collaboration and consensus-building, robust, equitable, and sustainable fiscal policies could be developed. Despite acknowledging the formidable challenges, Musa affirmed the legislature’s determination to address them.
Nigeria’s Debt Profile
As of the second quarter of 2023, Nigeria’s debt profile stands at N87 trillion, indicating a 75.2% increase compared to the first quarter. This surge is attributed to the addition of the N23 trillion obtained through Ways and Means by the federal government. The total debt stock comprises N33 trillion in external debt and N54.1 trillion in domestic debt. In preparation for the 2024 budget, the Federal government has allocated N8.25 trillion for debt servicing.
