Following the request of President Muhammadu Buhari to the National Assembly for permission, the Manufacturers Association of Nigeria (MAN) bemoaned that the rising debt profile is now a “cause of concern.”
The Director-General of MAN, Segun Ajayi-Kadir, said: “In my opinion, the 39 emergency projects in the power, agriculture, transport & mining sectors of the Nigerian economy alluded to by Mr President should redress some of our infrastructure and sectoral performance/linkage deficits.
“To this extent, the projects are needful and their successful completion would boost the productive capacity of the Nigerian economy.
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“However, the rising debt profile of Nigeria continues to be a cause for concern, especially the capacity of government to effectively service it and, at the same time, meet the bursting needs and aspiration of the citizenry going forward. “Already, our budget projections for 2020 anticipates a debt service sum of 2.45trillion, an amount higher than the 2.14 trillion earmarked for capital expenditure.
“And even though our debt-to-Gross Domestic Product (GDP) ratio, which currently stands at 28 per cent, is still below the average in Africa, our revenue-to-GDP ratio remains low.
“A possible consolation remains that this loan is not programmed to fund consumption, but likely to improve our productivity, depending on its strategic allocation, the governance of project execution and monitoring and management of its foreseen impact on subsisting government inflows and financial commitments,” MAN said.