Ignorance is a strong buffer for most Nigerians who cannot appreciate what it means for a country to spend about 92% of its revenue to service debt. A macro-fiscal stress test hints that this economy is finished.

I have come to the realization that in Nigeria, it is healthier to wallow in ignorance, lacking in knowledge of some of these things, at least that gives a semblance of peace of mind.

This is because it is hard to remain sane when you contemplate how a country’s debt servicing bill has increased by 109 per cent to N896.56bn.

This means that Nigeria has also spent N3.83tn on debt servicing payments in 15 months.

So having spent a total of N2.93tn on debt servicing payments in 2021, and a total of N896.56bn in the first quarter of 2022, the future is bleaker at least from the point of view of those whose minds can interrogate the overall implications of all these madness, while the ignorant go about their businesses as if nothing “dey happen”.

The 2022 budget has a deficit of about N6.25tn, approximately 3.39% of GDP which is slightly above the 3% ceiling set by the Fiscal responsibility Act 2007 (FRA). Yet the Madam at the Ministry of Finance is as calm as ice. The deficit is expected to be financed by new borrowings, on top of the debt trap we already found ourselves.

Interestingly, when you factor the fact that non-debt recurrent expenditure of N6.83tn is the largest expense item, with 60% relating to personnel costs at N4.11tn, then all the frivolous traveling across the world by the President and his ministers may make meaning to you.

The question is, is Nigeria sitting on a keg of gun powder while playing with a match stick? Your guess is as good as mine.

Credit: Kelechi Deca

Same was copied from his Facebook page.