The Church of Nigeria Anglican Communion has expressed concern about the not too good state of the nation’s economy stressing that it was a grave concern that debt servicing had increased to N11 trillion and surpassed both recurrent and budgetary expenditures.
Penpushing reports that the Archbishop Metropolitan and Primate of all Nigeria, Most Revd Henry Ndukuba expressed the worry in his presidential address to delegates to the just concluded Standing Committee Meeting of the Church in Ika Delta State.
The clergyman noted regrettably that the country profile has increased from 63 billion US dollars to over 120 US dollars by year end 2023, with 96% of revenues now going to just debt service alone, describing the development as frightening.
Penpushing further reports that Ndukuba pointed out that it will limit the funds available for critical sectors like healthcare, education and infrastructure, calling on the leadership of the country to quickly address this development.
The Primate stated that the debt profile could hinder the government’s ability to effectively implement its development agenda, and also reminded those in power that the reliance on external borrowing exposes the Nigerian economy to exchange rate risks.
Penpushing also reports that he emphasized that the risk was already having effect on the battered Naira currently exchanging at N1,420 to a $1, adding that another negative effect of high debt levels was the potential to erode investor confidence, particularly among foreign investors, resulting in capital flight, thereby negatively impacting the Nigerian stock market and overall economic stability.
The cleric reminded the country leadership that continuous borrowing contributes to inflationary pressures in the economy because as government injects more money into calculation, it drives up prices, affecting the cost of living for ordinary citizens.
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