Irrespective of Government’s insistence that Nigeria has not borrowed enough, a former president of the Association of National Accountants of Nigeria (ANAN) Dr Samuel Nzekwe on Thursday backed the IMF and other Nigerians, strongly advising the Federal Government to check the rising external debt profile of the country.
Nzekwe bared his mind in Ota, Ogun, against the backdrop of reports by the International Monetary Fund (IMF) on Wednesday highlighting that Nigeria‘s debt to GDP ratio was already risky.
Nzekwe said that the advice became necessary because it would be difficult to finance capital and recurrent expenditures when using more than a quarter of revenue generated to service debt.
He urged the government to be cautious in accumulating more debts, saying investors’ confidence may be eroded.
“We need investors to invest in Nigeria so that they can create employment and galvanise productivity as well as more receipts from foreign exchange.
“A huge debt profile would also affect exchange rate between Nigeria and others countries as our currency would start depreciating,” he warned.