President Muhammadu Buhari has highlighted the significance of factoring in Nigeria’s assets and investments while assessing the nation’s debt profile, emphasizing their integral role in the overall evaluation.
He highlighted this on Twitter this morning, saying that his administration has doubled Nigeria’s stock of infrastructure to gross domestic product (GDP) from about 20 percent to over 40 percent, which he described as a significant achievement.
This increase in infrastructure was accomplished despite challenges such as a plunge in global oil prices, a recession within the country, and a war in Europe.
President Buhari urged Nigerians to consider the assets and investment profiles that have been developed through both debt and investment income.
He mentioned that many nations, particularly post-war Europe, have built their wealth and prosperity on infrastructure development financed through debt, which was subsequently redeemed over several decades.
He also pointed out that some of the projects undertaken in Nigeria are commercially self-liquidating, implying that they generate revenue to repay the debts incurred.
The president stressed that investing in infrastructure is crucial for the country’s development and poverty alleviation. He implied that without such investments, the path to economic progress becomes much more challenging.
Debt Profile
Nigeria will face the significant challenge of dealing with a substantial debt burden left behind by the previous administration led by President Muhammadu Buhari.
The debt amounts to over $103.11 billion (N46.25 trillion), a stark contrast to the $10.32 billion debt inherited by Buhari in 2015. In addition, Tinubu will also have to address the N22.7 trillion in Ways and Means Advances from the Central Bank of Nigeria (CBN).
The current total debt of approximately N77 trillion has had a detrimental effect on the nation’s economy, leading to widespread consequences such as increased poverty, unemployment, and a decline in the overall standard of living for the majority of citizens.
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