Udoma: Nigeria’s N24.39trn debt sustainable — despite revenue challenges

Udoma Udoma, minister of budget and national planning, says despite the challenges to revenue generation, Nigeria’s rising debt stock is sustainable.

The Debt Management Office (DMO) had released a report showing that Nigeria’s total public debt had risen to N24.39 trillion as of December 31, 2018.

Patience Oniha, DMO director- general said the new figure represented a year-on-year growth rate of about 12.25 percent.

The Peoples Democratic Party (PDP) had thereafter accused the federal government of embarking on “borrowing spree.”

But speaking at the end of the federal executive council (FEC) meeting on Wednesday, Udoma said although borrowing was the norm in most countries, government is currently working on initiatives to widen its revenue base.

“With regards to our debts, our debts are sustainable.

We do have a revenue challenge and we are focusing on that. Once the revenues come up, it will be obvious that we don’t have a debt problem at all,” he said.

“We are working on a number of initiatives to increase our revenues. We are looking at initiatives to widening the tax pays.

“We are looking at initiatives to increase efficiency in collections. We are looking at a single window, which will help to increase efficiency, custom collections. We are looking at many different ways to improve revenues.

“The debts are sustainable, every nation borrows. We are working on increasing our revenues.”

On the 2019 budget, the minister said the executive arm of government is “looking forward” to when the national assembly will pass it.

“With regard to the budget, we are happy to see the focus of the National Assembly on the budget and we look forward to whenever it’s passed and the executive receiving it,” he said.