Ongoing borrowing weighs on economy —APBN

The Association of Professional Bodies of Nigeria said continued borrowing is starting to strain the country’s economy.

The association made this known at its recent annual general meeting.

According to the organization, it has become important for the federal government to stop accumulating debt.

Association president Akinloye Oyegbola said the loan might be desirable, especially when used to finance infrastructure. However, he noted that it was not in the best interests of the nation that much of its resources be used for debt service.

He noted that the country spent 1.02 billion naira on domestic and external debt service in the first quarter of 2021, with little or nothing for capital spending.

Oyegbola said: “Recent data shows Nigeria’s external debt is approaching $ 45 billion. The board has decided that if the loans are for infrastructure, they will repay themselves. We urge caution, however, as data has also shown that the country spends a huge portion of its annual budget on debt servicing.

“The Nigerian government spent 1.02 billion naira on domestic and external debt service in the first quarter of 2021, which is a 35.7% increase year-on-year to 753.7 billion naira spent during the corresponding period of 2020. ‘

The association praised the federal government for the gradual recovery of the country’s economy, but called on it to come up with effective policies that would save the value of the naira.

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