Nigeria Risks Debt Sustainability Crisis, FG Warns
The federal government has warned that Nigeria faces medium-term fiscal challenges, especially with respect to its revenues, which could snowball into a debt sustainability crisis if not immediately addressed. It also said that with the negative growth in the country’s second-quarter GDP, the economy could slide into a second recession in four years, with significant adverse consequences, unless the third-quarter economic performance showed better results.
It projected that Nigeria’s nominal Gross Domestic Product (GDP) will rise to N138.415 billion by 2023 and will also increase from N130.836 billion in 2020 to N 132.1254 billion in 2021. The Minister of State for Budget and National Planning, Mr. Clement Agba, reeled out the data yesterday while presenting the draft 2021-2023 MTEF/FSP to the House of Representatives Joint Committees on Finance, Appropriation, Budget and Economic Development as well as Loans and Debt Management.
According to him, the consumption expenditure, which is projected to remain flat at N118.735 billion in 2020, will increase to N 118.468 billion in 2021.
It will also grow to N124.358 billion by 2023, reflecting a gradual steadiness in the recovery. Agba, who represented the Minister for Finance, Budget and National Planning, Mrs. Zainab Ahmed, projected that inflation will remain above single digit over the medium term, given the structural issues impacting on the cost of doing business, including the high cost of food production. (This day)
