Apart from the worsening insecurity in Nigeria, the Church of Nigeria Anglican Communion is worried about the not-too-good state of the nation’s economy, especially the debt profile.
In his presidential address to delegates to the just concluded Standing Committee Meeting of the church in Ika Delta State, Primate of the Church of Nigeria, Most Rev. Henry Ndukuba said that it was a grave concern that debt servicing had increased to N11 trillion and surpassed both recurrent and budgetary expenditures.
He noted regrettably that “our debt profile has increased from US$63 billion to over US$120 by year end 2023, with 96 per cent of revenues now going to just debt service alone”.
The Primate described that as frightening as it would limit the funds available for critical sectors “like healthcare, education and infrastructure”.
Primate Ndukuba therefore called on the Nigerian leadership to quickly address the development as it could hinder the government’s ability to effectively implement its development agenda.
He also reminded those in power that “the reliance on external borrowing exposes the Nigerian economy to exchange rate risks”.
This risk, he pointed out, was already having effect on “our battered Naira currently exchanging at N1,420 to a $1”.
The Primate said that another negative effect of high debt levels is the “potential to erode investor confidence, particularly among foreign investors, resulting in capital flight, thereby negatively impacting the Nigerian stock market and overall economic stability”.
He reminded the leadership of the country that “continuous borrowing contributes to inflationary pressures in the economy because, as government injects more money into calculation, it drives up prices, affecting the cost of living for ordinary citizens”.
