• Urges government to address rising debt profile
Following the re-presentation of a $30bn loan bid to the Senate, the Manufacturers Association of Nigeria (MAN) has called on the Federal Government to provide the necessary details of how the fund will be spent. This is even as the organisation urged the government to address the rising debt profile of the nation.
MAN Director-General, Mr. Segun Ajayi-Kadiri, made the call in Lagos recently.
He said government had not provided the needed details in that request, adding that was the reason why the 8th Assembly could not pass it.
Ajayi-Kadiri said that the 39 emergency projects in the Power, Agriculture, Transport and Mining sectors should redress some infrastructure and sectoral performance and linkage deficits.
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“To this extent, the projects are needful and their successful completion would boost the productive capacity of the economy. A possible consolation remains that this loan is not programmed to fund consumption, but to improve our productivity. However, improved productivity is dependent on the government’s strategic allocation, project execution, monitoring and management of its foreseen impact on subsisting government inflows and financial commitments,” he said.
Speaking on the rising debt profile of the country, Ajayi-Kadri advised government to address the issue urgently.
“The rising debt profile of Nigeria continues to be a cause for concern, especially the capacity of government to effectively service it and meet the needs and aspiration of the citizenry. Already, our budget projections for 2020 anticipate a debt service sum of ₦2.45 trillion, an amount higher than the ₦2.14 trillion earmarked for capital expenditure. Also, our total external debt stands at 27.16 billion U.S dollars, while domestic debt has climbed to 56.72 billion U.S dollars” he said.
