By Modupe Gbadeyanka

Director-General of Nigeria’s Debt Management Office (DMO), Ms Patience Oniha, has allayed fears of some observers that the country was already in a debt crisis.

However, the debt office boss admitted that the nation was not generating enough revenue to fund some critical operations, but stressed that Nigeria was still capable of servicing her debts.

Ms Oniha, in a chat with newsmen on the sidelines of the International Monetary Fund and World Bank Group summit in Indonesia, noted that efforts were being done to avert a debt crisis in the Africa’s largest economy.

This, she said, federal government was doing by shoring up the revenue base by diversifying the economy.

“Debt crisis means you are no longer able to service your debts, which is what we are talking about. We can’t stop talking about it, the figures are there.

“I agree that we are not generating as much revenue as we should, but we are not in a debt crisis as many have feared,” Ms Oniha told journalists.

She said further that, “When you compare your revenue to your Gross Domestic Product (GDP), it is low and we cannot run from the fact that we need to generate more revenue.”

“Generating more revenue does not mean we should focus only on increasing production in the Niger Delta or praying for oil prices to rise, we have to generate long-term revenue. How do you generate that?

“You have to enforce compliance, which is all about increasing the tax base and making sure that those who are paying are paying the correct amount and not just paying a small amount to escape. The option that was talked about here about raising taxes,” she added.

Business Post recalls that earlier this month, analysts at FSDH Research had called on government to avert an imminent debt crisis in the country.

The firm had said in its report that the growth in Nigeria’s debt was higher than the growth in revenue, pointing out that Nigeria has the lowest government revenue to Gross Domestic Product (GDP) ratio at 6 percent among some selected countries.

According to the company, Nigeria’s over-dependency on crude oil revenue, combined with volatility in both the price and production of crude oil are the major reasons for sluggish growth in government revenue.

It said growing non-oil revenue will require that the Nigerian economic environment has inherent structures that can support business growth, noting that such structures include adequate physical infrastructure, policies, legal and regulatory frameworks that will make the economy business-friendly to generate taxable profits.

“Our analysis of the ratio of the interest payment on domestic debt relative to the FGN allocation from the Federal Account Allocation Committee (FAAC) shows that the FGN is spending too much of its revenue to pay interest on loans.

“This leaves the government with little resources to spend on critical sectors of the economy that could support strong growth and maintain a healthy economy to generate revenue,” it said.

FSDH Research said further that, “The current high interest payment relative to revenue may also increase the credit risk of the country. Although the government has been able to meet its debt obligations (interest and principal payments) so far, if the current situation is not addressed, the interest rate on government loans may increase because of the perceived elevated risk. This would also lead to higher interest rates for private sector operators.”

The firm disclosed that the external environment was becoming tighter than before because of the rising interest rate in the US.

https://www.businesspost.ng/2018/10/12/nigeria-not-in-debt-crisis-at-the-moment-dmo/

Lol @ the moment, so after 2019 will be the moment. Thunder strike that gworo man

He borrowed 13 trillion within 3 years yet, in his eyes he doesn't see debt crisis. Trust me guys this man buhari will sink us with Dept's b4 2019 and still claim he doesn't see anything bad with it.

Thank God 2019 is here. Let's give Econometricians opportunity

All the govt parastatals are churning out positive forecasts and outlook desperately to secure 2019 for the oga on top.
Even Osinbajo is promising to train 10 million hands by 2023 when same NPower couldn't train 1 million hands in four years. I laugh in desperado.
Even baba is now threatening religious leaders forgetting that Osinbajo, Nbaka, and Bakare are all religious leaders. Even Zaki of Shiite is.

So why is Nigeria still borrowing money even after mortgaging Nigeria into chronic indebtedness? Why is the economy in tatters? What is Nigeria's GDP today? This is the second major propaganda by this government today but it waterloo is imminent.

Racoon:
So why is Nigeria still borrowing money even after mortgaging Nigeria into chronic indebtedness? Why is the economy in tatters? What is Nigeria's GDP today? This is the second major propaganda by this government today but it waterloo is imminent.

Four years ago when we had a far smaller/lower debt profile the APC men like Tinubu, Osinbajo and Buhari were singing another tune. Politicians are mostly devilish agents who will sell a whole generation to have their belly and ego satisfied.

Cum again..?

tabisegroup:
Cum again..?

smh

You owe #13 trillion naira...


And you are convincing yourself you are not a debtor, onigbese, onye ugwuo.

Something demonic is wrong with this mistake of a govt.

This news go pain haters of buhari o

At what point do we reach crisis level?
when it is too late?

So this is good news?..We should be happy that although we are not dead yet, we have AIDS..oya lets dance !!!

Donald95:
He borrowed 13 trillion within 3 years yet, in his eyes he doesn't see debt crisis. Trust me guys this man buhari will sink us with Dept's b4 and still claim he doesn't see anything bad with it.

Thank God 2019 is here. Let's give Econometricians opportunity

How do you expect a lifeless brain to think or see anything bad in what he does?

Thinking is for the living and not for the dead

Donald95:
He borrowed 13 trillion within 3 years yet, in his eyes he doesn't see debt crisis. Trust me guys this man buhari will sink us with Dept's b4 and still claim he doesn't see anything bad with it.

Thank God 2019 is here. Let's give Econometricians opportunity

Lol.
Econometricians that looted our treasury from 1999 to 2007?
God forbid.

I prefer an idiot/ignorant man to a thief anyday, anytime. It's better my car is broken than stolen...

Donald95:
He borrowed 13 trillion within 3 years yet, in his eyes he doesn't see debt crisis. Trust me guys this man buhari will sink us with Dept's b4 and still claim he doesn't see anything bad with it.

Thank God 2019 is here. Let's give Econometricians opportunity

can you tell me how much he has borrowed, I want you to tell me the amount in us dollar, cause we will pay back in us dollar.

And then I will compare it to the government of GEJ/PDP

Laye!

Our Debt to GDP ratio has soared.

Our Revenue has not increased to meet this rise.

Almost 25% of our Budget is being used to service debt.

For every 100Naira we made in 2017, we used 61 Naira to service debt.

In 2018, we will borrow 2.1trn to service 2.1trn debt.

Is that not Buharinomics

Atiku is "a most disloyal human being" Obasanjo.

post=72067031:
GOD BLESS OUR PRESIDENT MUHAMMADU BUHARI

God catch you there.
God bless Nigeria rather.

johnjay4u2u:


God catch you there.
God bless Nigeria rather.

Okay, GOD BLESS NIGERIA .
Is that all?!

Let's keep atikulating

tabisegroup:
Cum again..?

open your mouth

Donald95:
He borrowed 13 trillion within 3 years yet, in his eyes he doesn't see debt crisis. Trust me guys this man buhari will sink us with Dept's b4 2019 and still claim he doesn't see anything bad with it.

Thank God 2019 is here. Let's give Econometricians opportunity

Do you have any evidence to support your figures here?

Blackfire:
You owe #13 trillion naira...


And you are convincing yourself you are not a debtor, onigbese, onye ugwuo.

Something demonic is wrong with this mistake of a govt.

Do you have evidence for this claim?

But would be in the next 1yr, which is why we need to change this government and bring in someone with experience in managing resources.

Removing Buhari is the best thing for the country. Nigeria must come first and not an individual's personal interest.

Presidency of the country should not be just to make Buhari feel important. Stakes are too high for that.

Atikulate!

Buhari must be flogged back to Daura next year before he finally buries Nigeria

Donald95:
He borrowed 13 trillion within 3 years yet, in his eyes he doesn't see debt crisis. Trust me guys this man buhari will sink us with Dept's b4 2019 and still claim he doesn't see anything bad with it.

Thank God 2019 is here. Let's give Econometricians opportunity

He borrowed so that he can handle the critical infrastructure your PDP abandoned over a period of 16years.

He borrowed for investments. He did not borrow for liabilities which was what your GEJ did when he borrowed.

13 trillion invested into infrastructure pays itself over time.

Its like you borrowing 5 million naira to invest in a business and then paying back the loan from the profits you make from that same business.

Will you say you have mortgaged your life over such an investment?

With this, u will know that devil itself is relying on our economy...he sees it as juicy because we dont have good managers

NaijaFutbol:
Laye!

Our Debt to GDP ratio has soared.

Our Revenue has not increased to meet this rise.

Almost 25% of our Budget is being used to service debt.

For every 100Naira we made in 2017, we used 61 Naira to service debt.

In 2018, we will borrow 2.1trn to service 2.1trn debt.

Is that not Buharinomics

Revenue cannot increase until infrastructure is complete. Its the same infrastructure that will generate the revenue. (ECONOMICS 101)

This is why the government is aggressively pushing infrastructural development and were very angry when NASS cut infrastructural budgets to the extent they had to quickly block the cuts with a special fund so that those critical infrastructure do not suffer.

When they are finished, then the story changes.