Nigeria’s debt repayment has surpassed both recurrent and capital expenditure, raising concerns about the country’s fiscal sustainability.

According to Tilewa Adebajo, CEO of The CFG Advisory, Nigeria’s debt burden of $130 billion consumes 95% of revenues, with debt repayment exceeding both recurrent and capital expenditure.

Adebajo warned that Nigeria’s debt levels are unsustainable and may lead to default, citing Ghana, Zambia, and Ethiopia as examples.

He advocated for debt restructuring, fiscal discipline, and economic reforms to achieve sustainable growth.

Nigeria’s public debt stock rose from N97.34 trillion in December 2023 to N121.67 trillion in March 2024, according to the Debt Management Office.

Despite a significant infrastructure deficit and growth challenges, Nigeria aims to become the third-largest economy in Africa.

Adebajo highlighted the need for economic reforms, revenue diversification, and debt management to achieve sustainable growth and avoid economic default.

He emphasized the importance of fiscal discipline, transparency, and accountability in government spending to build public trust and attract foreign investment.

The expert recommended negotiating with creditors to restructure debt, reducing non-essential government spending, improving tax collection, and introducing new revenue sources.

He also stressed the need for a competitive exchange rate, tight monetary policy, and collaboration with regional and international organizations to access financial assistance and market opportunities.