...tasks Nigeria govt on revenue drive
The International Monetary Fund (IMF) has said that Nigeria’s debt position deteriorates because the country’s spending outstrips what it earns in revenue.
The Fund’position is relayed by its Nigeria Representative Aisen Ari at
Proshare @WebTVng Twitter Space monitored by New Telegraph Abuja.
Currently, the country’s public debt is in the neighbourhood of N77 trillion from N44.6 trillion debt stock position in the first quarter of 2023 according to Debt Management Office (DMO) record.
The total debt stock rises to N77 trillion as a result of the N22 trillion Ways and Means loan the Central Bank of Nigeria (CBN) advanced to the government to meet up her fiscal deficit challenges. The National Assembly recently endorsed its securitization.
Ari spotted insufficient revenue as a critical challenge facing Nigeria in navigating her debt stock.
Contributing to the topic he said: ” The government is spending more than the revenue that is actually getting. It’s as simple as that.
So how do you? The question is, how do you reduce the spending needs of the government? That should be the question when asking the question about the debt issues in Nigeria.
It’s really about the fiscal discipline required in every household. You cannot spend beyond what you raise in revenue.
The debt position has been deteriorated because the government is spending more than is actually getting in revenue. Is as simple as that.
How do you reduce the spending needs of the government? It’s as simple as that “IMF Country’s Representative said, harping on the importance of fiscal discipline for Nigeria to achieve sustainable debt levels.
His stance syncs with his position in Management Office (DMO). The debt agency repeatedly canvassed a reduction in government excessive spending and an increase in revenues.
At the Proshare Forum, DMO Director General Ms. Patience Oniha advised the government to curb rising expenditures and increase revenues, noting that bridging the gap between expenditures and revenues will reduce the annual budget deficits which are the major cause of a rise in debt stock.
Consistently DMO has been preaching to both the federal government and states to increase revenue generation as this will reduce annual budget deficits and the need to borrow. By increasing revenues, the likelihood of debt distress is mitigated.