Nigeria’s rising debt profile is a source of concern to most Nigerians especially, having just exited the Paris Club barely six years ago. Sadly, the minister then in the Obasanjo cabinet who negotiated the $30 billion debt buy back, Ngozi Okonjo Iweala, is the same person spear heading Nigeria’s entry back into foreign debt.
But one person is not impressed with the country’s present debt level and has raised the alarm over the development. Governor of Central Bank of Nigeria,CBN, Mallam Lamido Sanusi, on warned that the rate of external borrowing, if left unchecked, would result into hardship for Nigerians.
Sanusi, while speaking at the Honorary International Investment Council conference in London, argued that if the existing level of borrowing from big nations continued unabated, huge debt profile would place “undue burden on posterity.”
The country’s total external debt stood at $6.2bn as of September 30, while the domestic debt profile was N6.3tn.
A statement from the apex bank on Tuesday quoted the CBN governor as saying, “We are borrowing more money today at a higher interest rate while leaving the heavy debt burden for our children and grandchildren.
“For example, if you receive your salary and every day the money is not enough, you have two options to adjust yourself; either check your expenditure or check your wages.”
He advised the Federal Government not to allow the present and unborn generations inherit the heavy burden of foreign debts since Nigeria is currently in great danger because of it.