Nigeria’s Rising Debt Profile Under Scrutiny

A renowned economist, Prof. Akpan Ekpo, has expressed concerns over Nigeria’s increasing debt burden, stating that it is not justified by the projects undertaken by the current administration. Speaking on a television program, Ekpo emphasized that he has yet to see tangible projects that warrant the current debt levels. He suggested that if the borrowed funds were directed towards critical infrastructure such as power, which could stimulate job creation and economic growth, it would be a positive development.

Ekpo stressed the importance of transparency in borrowing and the need for loans to be strictly tied to projects that add value to the economy. He noted that a strong domestic economy, resilient to external shocks, can only be built through prudent and targeted investments. According to Ekpo, the key to justifying Nigeria’s high debt rate lies in the implementation of projects that have a direct and positive impact on the economy.

Nigeria’s debt profile has been a subject of concern in recent times, with the country’s debt stock continuing to rise. The administration of President Bola Tinubu has been undertaking various projects, but Ekpo’s comments suggest that more needs to be done to justify the current debt levels. As the Nigerian government continues to borrow to finance its activities, it is essential to ensure that the funds are utilized efficiently and effectively.

The emphasis on transparency and accountability in borrowing is crucial, as it enables the government to build a strong and resilient economy. By investing in critical infrastructure such as power, the government can create jobs, stimulate economic growth, and improve the overall standard of living. As Nigeria navigates its economic challenges, it is essential to prioritize prudent financial management and ensure that the country’s debt burden is sustainable and justifiable.