“Rate of expansion of public debt exceeds capacity to raise revenue” – Business – The Guardian Nigeria News – Nigeria and World News

Stakeholders in the financial sector of the economy have expressed concern that Nigeria’s public debt over the past five years has grown by an average of 21.02 percent while the economic growth figure has averaged 0.15 percent.

One of these stakeholders, Taiwo Oyedele, Tax Policy Partner and Head of Africa Taxation at PricewaterhouseCoopers (PwC), who is also the guest speaker with an article titled “Nigeria’s Rising Debt Profile: Issues and Implications for Sustainable Economic Development “at the 2021 stock exchange. The Chartered Institute of Bankers of Nigeria (CIBN) investment program, held in Lagos, reported that income, on the other hand, grew by an average of 5.19%.

According to him, implicitly, the rate of expansion of public debt in Nigeria is rapidly exceeding the government’s revenue-raising capacity, adding that this consequently increases the debt-to-gross domestic product (GDP) ratio by 20.32% in 2015. . to 34.98% in 2020.

He said the rate of increase in the stock of public debt, in particular, has raised concerns about fiscal sustainability in Nigeria.

Also speaking at the event, virtually, World Trade Organization Director-General Dr Ngozi Okonjo-Iweala, who is also one of the event’s fellows, praised the banking industry for its contribution to the development of the country. well the continent.

She said: “I am honored to be appointed a member of a prestigious Chartered Institute of Bankers of Nigeria. I thank the institute for the excellent work it has done in upholding the professional and ethical standards of the Nigerian banking sector as well as for its efforts to educate new generations of bankers.

She noted that while the banking sector has contributed to the country’s development, much remains to be done and the emerging FinTech sector has an important role to play.

For his part, Central Bank of Nigeria (CBN) Deputy Governor Dr Kingsley Obiora said that the launch of eNaira by President Muhammadu Buhari has positioned Nigeria as a global leader in innovation in the landscape of financial and payment systems.

“It is no coincidence that the president launched eNaira, spurring a historic first and introducing Africa’s first digital currency, and it is no small feat because it makes us and positions us again as a global leader in innovation in the financial and payment systems landscape. .

“I am very happy that one of us today, John Obaro, has always been a leader in the payment systems landscape; I believe these core values ​​of integrity, professionalism, innovation, ethics and ethics should also complement excellence in everything we do as the core of our growth and development. as a country.

“I firmly believe that these attributes will help us grow and reach the Promised Land,” he said.

A total of 237 people awarded prizes at the event; 14 honorary members, 77 elected members and 146 senior honorary members.

CIBN President Dr Bayo Olugbemi urged stakeholders in the banking and financial sector to support government efforts and initiatives aimed at improving the economy towards inclusive growth and development.

However, he urged the government to do everything to minimize excessive borrowing.

“I would like to suggest that we continually strive to control our growing debt profile. Like Latin Americans, let’s embrace import substitution models that ultimately promote local products and services, economic growth, and sustainable development.

“We also need to continue on the path to efficiency, ensuring that any recurrent costs that could potentially lead to excessive borrowing are kept to a minimum,” he said.

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