The Central Bank of Nigeria (CBN) has warned that the debt level of the country may return to the pre-2005 Paris Club debt level unless the Federal Government (FG) comes up with immediate measures to redress the situation.
The CBN stated this on Tuesday in Abuja after its first meeting of the year.
Statistics from the debt management office revealed that Nigeria’s debt profile as at June 2018 stood at $22.08 billion.
However, key officials of President Muhammadu Buhari’s administration have consistently dismissed fears raised by Nigerians over the rising debt profile.
Prominent among these Buhari administration officials is the Vice President, Yemi Osinbajo and the Minister of Power, Works and Housing, Babatunde Raji Fashola.
However, the CBN Governor, Godwin Emefiele, said the issue is already being taken care of while calling for caution.
He said: “On external borrowing, the committee noted the increase in debt level advising for caution, noting that it could fast be approaching the pre-2005 Paris Club level.”
The CBN called for the effective implementation of the 2018 capital budget and the Economic Recovery and Growth Plan in other to stimulate economic activities.
“The committee observed that the near term risk to inflation remains the impact of flooding on agricultural output, insecurity on food-producing belts in the country, exchange rate pass through to inflation due to the weakening of oil price and campaign-related spending towards the 2019 general elections.
“Accordingly, the Monetary Policy Committee called on the Federal Government to sustain its efforts towards improving security to ease supply chain bottlenecks.
“The committee recommended that the Federal Government should focus investment on infrastructure and urge the Federal Government to sustain the pace towards addressing infrastructure deficit in Nigeria.”