Former Vice President Alhaji Atiku Abubakar has raised alarm about Nigeria’s growing debt, Financial crisis. Atiku, In a statement on his official Twitter page on Tuesday, said that Nigeria is in a financial crisis.
According to him, the ratio of Nigeria’s debt to revenue is now 99%, adding that the Federal government (FG) should cut Nigeria’s budget by at least 25% to reflect the economic realities of the time.
He noted that the Federal government should refrain from indiscriminate lending, and suggested ways to both increase revenue and reduce spending.
The statement read in part: “Nothing has shocked me more in my entire life in public service than the revelation from Nigeria’s first quarter 2020 financial reports under the medium-term spending and budget strategy of the Federal Ministry of Finance, budget and national planning, which shows that this is alarming.
“Nigeria spent a total of 943.12 billion yen on debt servicing, while the Federal government’s retained earnings for the same period were only 950.56 billion yen.
“This means that Nigeria’s debt-to-income ratio is now 99%.
“No one should be deceived. This is a crisis, and debt servicing does not equate to debt repayment.
“I have advised the FG to cut Nigeria’s budget by at least 25% to reflect the economic realities of the time we live in.”