The Securities and Exchange Commission has declared the recent rate of increasing debt service as an economic threat to Nigeria.
This comes after the Minister of Finance, Budget and National Planning, Zainab Ahmed insisted that the government had to borrow to fund the 2021 budget.
At the 5th Annual Budget Seminar of the Securities and Exchange Commission with the theme, “Financing Nigeria’s budget and infrastructure deficits through the capital market,” the SEC also stated that shocks to commodities were affecting revenue generation.
It disclosed this in a presentation delivered by the Head, Economic Research and Policy Management Division, Office of the Chief Economist, SEC, Afolabi Olowookere.
The commission said, “Total public debt has increased from N5.24tn in 2010 to over N32tn in 2020. Still fine at around 20 percent of GDP (Gross Domestic Product).
“But rising debt service is a threat. Also shocks to commodities price (are) affecting revenue. And low tax to GDP ratio.
“Moving towards improved sustainability may require future debt tied to revenue-generating projects.”
