President-Elect Tinubu Inheriting A Colossal Debt Burden of N46.25 Trillion

• Nigeria’s total debt stock has reached N46.25 trillion, which has mortgaged the country’s future through heavy obligations.

• The incoming President-elect, Asiwaju Bola Ahmed Tinubu, will inherit a daunting economic challenge with no apparent means of repayment for the colossal debt burden.

• To stabilize the economy and assure young Nigerians of hope in Nigeria, the incoming government must find creative ways to address the factors that drive economic activities, invest in the youth, and seek loan renegotiation if it has credibility.

EKO HOT BLOG reports that the President-elect of Nigeria, Asiwaju Bola Ahmed Tinubu will inherit a daunting economic challenge. Nigeria’s total debt stock has hit N46.25 trillion over the eight years of the current administration, which includes that of President Muhammadu Buhari.

This figure does not include the N369 billion loan approval that the incumbent government says it has received from the World Bank to cushion the effect of fuel subsidy removal scheduled for implementation in June 2023.

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The Debt Management Office (DMO) reports that Nigeria’s debt profile has grown from N12.6 trillion in 2015 to over N46 trillion in 2023. The International Monetary Fund (IMF) has warned that Nigeria almost emptied its treasury on debt servicing in 2022, raising concerns about the country’s economic future.

Recently, the Federal Inland Revenue said it collected N10 trillion in revenue in 2022, with a 2023 budget expenditure of N21.83 trillion pegged on deficits of N11.34 trillion. While some experts suggest that seeking loan renegotiation may be the only viable option, others express worries that the burdened economy will be a tough challenge for Tinubu to fix.

According to Professor Bongo Adi of Lagos Business School, the debt incurred by President Buhari’s government has mortgaged the future of the country through heavy obligations. He says that Buhari’s administration has left Nigeria broke, and there is no apparent means of repayment for such a colossal debt burden. Adi suggests that in the coming days, it will be difficult for the Nigerian economy due to the unsustainable debt profile.

Adi proposes that the incoming government should seek loan renegotiation. However, he adds that this would only work if the government has credibility. He further explains that the World Bank’s advice has never helped Nigeria or any developing country. Therefore, it is essential to assemble credible individuals in the incoming government to make any progress.

The current economic situation in Nigeria is not pleasant, and it is set to worsen. The country’s debt burden endangers the lives of everybody, with medical professionals leaving the country, leaving nobody to create money to pay back the loans. The factors that drive economic activities are rapidly depleting.

Adi emphasizes that the priority of the coming government should be how to find creative ways to assure the youths of hope in Nigeria. He adds that the most important thing is to give young Nigerians hope to stay in the country, but then the economy and security must first stabilize. Every country invests in its youth, but this is not the case in Nigeria.

FURTHER READING  

• NIDCOM Chair: Evacuation Arrangements Underway For Nigerians Trapped In Sudan

• Ohanaeze Ndigbo Leadership Crisis: Njiko Igbo Forum Rejects New President-General

• Legal Practitioners Call Out Buhari Over Lack Of Transparency In Asset Declaration

Tinubu will inherit a debt-ridden economy with no apparent means of repayment. As Professor Bongo Adi suggests, seeking loan renegotiation may be the only viable option for the incoming government, provided that it has credibility. However, fixing Nigeria’s debt-burdened economy will be a tough nut to crack.

It is essential to address the factors that drive economic activities to stabilize the economy and security. Additionally, investing in young Nigerians is key to assuring them of a hopeful future in Nigeria.

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