The International Monetary Fund issued a warning earlier this year, stating that if the government doesn’t take necessary steps to increase revenue creation, debt servicing might consume 100% of the federal government’s revenue by 2026.

In its first quarter 2022 fiscal performance report, which was published this week, the federal government stated the federal government’s overall income for the period was N1.63 trillion.

Additionally, a staggering N1.94 trillion was spent on servicing the national debt.

Minister of Finance, Budget, and National Planning Zainab Ahmed stated that urgent action is needed to address income underperformance and expenditure efficiency at the national and sub-national levels.

In her words: “The aggregate expenditure for 2022 is estimated at N17.32 trillion, with a prorata spending target of N5.77 at end of April,”.

This is not surprising given that the Nigerian government keeps raising subsidies and enforcing rigorous regulatory standards on trade. 

When it comes to debt repayment, it is not resources that are a barrier; rather, it is poor government decisions. The Nigerian government, like most African leaders, insists on borrowing and then investing in unsustainable projects.

Nigeria is rich with resources and potential that can significantly develop her economy. Providing everyone, particularly young people, the freedom to thrive is important to boost the economy. 

AFEEDi emphasizes that in the midst of a dire crisis, Nigeria should not be governed like a nation experiencing continuous progress. Creativity, innovation, and strong leadership are needed to harness the country’s potential in light of our current socio-economic and financial problems.

Also, in order for private businesses and organizations to contribute to the economy, the government needs to lift trade barriers. Long-term economic growth will not be achieved if Nigeria prioritizes borrowing and servicing existing debt over investing in long-term development.