A don, Dr Dominic Agba, has warned the three tiers of government not to incur more debts as it is worsening debt to revenue ratio.
Agba, who teaches Economics at Landmark University, Omu-Aran, Kwara State, gave the advice during an interview with the News Agency of Nigeria (NAN) in Lagos on Friday.
He said that the three tiers of government should reduce their borrowing as it was worsening debt to revenue ratio without any development to show for it
Agba said that the Federal Government had earmarked a sizable percentage of the 2018 budget for debt servicing.
“The Federal Government earmarked over N1 trillion for debt servicing in this year’s budget alone.
“Then how much is left for infrastructure development for the generality of the masses,” he queried.
Agba said that the three tiers of government should be cautious not to incur more debts for the unborn generation.
“Our people should be careful not to borrow without anything to show for it, we must begin to look inward.
“There are many opportunities in mining and precious metals that have not been harnessed, rather than incurring debts for the country,’’ he said.
NAN reports that Lagos State retains its position as the state with the highest foreign debt in the country with foreign debt stock of 1.45 billion dollars as at June 30, 2018.
A document obtained from the Debt Management Office on Wednesday in Abuja entitled: “States, Federal Capital Territory and Federal Government’s External Debt Stock as at June 30, 2018,” also detailed other states’ external debts.
The document also stated that the external debt stock of the entire nation stood at 22 billion dollars with the Federal Government incurring 17.8 billion dollars, while the states and the FCT owed 4.28 billion dollars.
This means the Federal Government accounted for 81 per cent of the country’s external debt, while the states and the FCT accounted for 19 per cent. (NAN)
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