Economist Advises FG On Nation’s Debt Profile

An economist, Mr Henry
Boyo, on Monday advised the Federal Government to halt the nation’s rising debt profile in order not to retard its economic growth.
Boyo, the Chief Executive Officer, Les Leba Ltd, told newsmen in Lagos that the persistent increase in the foreign debt had made Nigerians to be poorer.
Statistics released by the Debt Management Office (DMO) on its website showed the nation’s foreign debt stood at N7.93 trillion as at June 30 while the domestic debt component was put at N6.85 trillion.
Boyo held that Nigerians had not been asking questions on how the federal government spent the money borrowed from international markets.
He said loans at seven per cent to eight per cent were on the high side for Nigerian economy that was not stable, noting that the nation has so many funds in the foreign reserves and there is no reason for external borrowings.
Boyo said government should make use of interest rates it has control over in the country rather than the ones it had no control over abroad.
Mr Oluwole Ibikunle, of Boaz Management & Financial Strategies Limited, said the nation’s debt profile was worrisome since there was nothing to show for the borrowing.
Ibikunle said the economic progress of the country would be retarded when it begins to service its debts.
“l think there should be caution on borrowing in a situation where the nation’s debt profile is rising and the government cannot point to what it used the money for’’, he said.
He advised the government to take aggressive steps to stop reckless borrowing by the states.
General Manager, Cash Craft Assets Management Limited,Mr Ayodeji Fagbenle,  said the increase in the nation’s debt profile may worsen the economy.
Fagbenle said that most of the money borrowed was not used for capital projects.
“Some of the monies end up in private pockets. This is not good for the nation’s image internationally“, he said.
He urged the Federal Government to tackle corruption so that funds borrowed could be used for what they were meant for.