22 CSOs decry rising debt

A coalition of 22 anti-corruption organisations, under the aegis of Tax Justice and Governance Platform (TJ&GP) has urged the federal government to reduce its dependency on international and private creditors to stem the rising debt profile and its adverse effects on citizenry.

They made the call in Abuja during a joint briefing at the end of their meeting where they protested Nigeria’s rising debt profile even when there is less developmental project to justify the borrowings.

Daily Trust reports that Nigeria’s total public debt reached N87. 91 trillion by the end of the third quarter of 2023.

Speaking at the meeting, Executive Director of Civil Society Legislative Advocacy Centre (CISLAC), Mallam Auwal Musa Rafsanjani, stated that the federal government must reduce its dependency on international and especially private creditor borrowings, which account for about 60 per cent of the annual debt servicing cost, but should prioritize concessional loans, in adherence to legal stipulations.

According to him, the current economic situation in Nigeria, characterised by dwindling government revenues and escalating public debt, demanded immediate and strategic interventions.

“As of December 2022, 80 per cent of Nigeria’s total revenue was dedicated to debt servicing. The new government (of President Tinubu) on its part has commended itself for allocating more funding to social services in its 2024 budget.

“However, the country will spend six times more on servicing debts than on building new schools and hospitals in 2024. In its N28trn 2024 budget, the pattern of bloated recurrent spending, new borrowings and unsustainable debt servicing costs still persist,” Rafsanjani said.