Mohammed Nami, Executive Chairman of the Federal Inland Revenue Service (FIRS), says over N3 trillion is proposed for debt servicing in 2021.
He is worried by Nigeria’s debt to revenue ration which he says is worsening.
According to him, “A Debt Management Office (DMO) report indicates that about N1.21 trillion was used to service debt from January to June 2020.
“Over N3 trillion is proposed for debt servicing in 2021. The report further projects that Nigeria’s debt stock will grow significantly by end of 2020.
“God forbid that Nigeria should default in debt repayment obligations. Nigeria’s debt to revenue ratio is worsening – it is estimated at 538 percent at the end of the fourth quarter, that is 190 percent increase from 2019 figure (348 percent).”
Nami said all hands have to be on deck to improve domestic revenue mobilisation to ensure that the country does not fall into a debt crisis that could worsen insecurity and political unrest.
He explained that this is necessary because Nigeria is a mono-product economy hence any change in crude oil prices will affect the country.