A non-governmental organisation of the Catholic Church, Caritas Nigeria has expressed concern over the nation’s rising debt profile, saying the current debt is on the high side and worrisome.
The church raised the alarm during a one-day roundtable discussion organised by Caritas Nigeria, in partnership with the Provincial Secretariat of Church and Society(HJDP), and the Justice Development and Peace Caritas (JDPC ) Kaduna Archdiocese with the theme; “Nigeria’s Public Debt Management (PDM) and Equity in the Utilisation of Special Drawing Rights (SDR): The Role of Faith-based Actors.”
The lead, Good Governance, JDPC, Catholic Secretariat of Nigeria, Joe Nkamuke, cautioned the federal government over the increasing debt profile, saying it is even more disturbing that most of these debts were not deployed for production.
Nkamuke tasked the faith-based leaders to use the Freedom Of Information Act (FOIA) to ask questions on how some of these loans are utilised.
“Make use of FOIA to ask questions. Use your pulpit to create awareness, let people know what is happening and the dangers of irresponsible borrowing,” he added.
He however, said that Nigeria’s debt rose from N24.33 trillion within 3 months from N97.34 trillion in December 2023 to N121.6 trillion in the first quarter of 2024.
“Every Country is borrowing. But the question is: what are you borrowing for? That is the difference between responsible and irresponsible borrowing”.
Nkamuke harped on the urgent need to diversify the country’s revenue base by reviving the country’s faltering non-oil sector, adding that it can be achieved by creating an enabling environment for businesses and entrepreneurs through implementation of effective policies that enhance domestic production and promote import substitution. He said since high budgetary allocation to recurrent expenditures is not sustainable, governments should take deliberate steps to avoid that route.
According to him, it is important that Nigeria cuts its spending on frivolities and focuses on investing in key productive sectors of the economy. He also advised the government to engage some creditors to explore the potential of debt forgiveness.
Earlier in his address, the Catholic Archbishop of Kaduna, Most Rev Matthew Man-Oso Ndagoso who was represented by Very Rev. Fr. Philip Gaiya said that continued borrowing poses risks to financial stability and economic growth of Nigeria.
He said that a high level of corruption, lack of transparency, and poor governance hinder effective public debt management in Nigeria.
Earlier, the programme officer of Caritas Nigeria, Jude Akwo, explained that the essence of the roundtable was to draw the attention of faith-based leaders to their responsibility in terms of advocating to the government for the need for responsible spending of our resources, especially borrowed funds.
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