Former President Olusegun Obasanjo Friday said that Nigeria risks looming bankruptcy due to the continuous accumulation of debt by the President Muhammadu Buhari government.
Speaking as a keynote speaker at the “Why I am Alive” campaign in Lagos, southwest Nigeria, the former Nigerian leader said things might get worse economically as Nigeria kept accumulating debts.
Concise News reports that presenting his speech, titled ‘Nigeria: The challenges of debt and sustenance of democracy,’ Obasanjo said in 2015, Africa’s most populous nation’s total external debt was about $10.32bn.
But the former president, who led Nigeria between 1999 and 2007, said by March 2019, the country’s external debt had climbed to $81.274bn.
He said, “Such a situation talks about an impending bankruptcy. No entity can survive while devoting 50 per cent of its revenue to debt servicing.
“It has recently been pointed out that in 2018 that total debt servicing took over 60 per cent of government revenue. What’s more, we are not doing enough to address the fundamental, deep-seated and structural challenges that inhibit the expansion of our economy.”
He also said, “A well-calibrated debt for infrastructure and other developmental goals could be very positive. However, we do not need to speculate. We need to examine our historical experience.
“Everyone knows that our governments are notoriously deficient in serious and adequate discipline and most often lack competence and consistency as well.”
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