By Omolabake Fasogbon:
An urgent implementation of the Steve Oronsaye report towards cutting cost of governance has been highlighted as a workable panacea for Nigeria’s rising debt profile.
Director-General of Budget Office of the Federation, Ben Akabueze emphasized this at the 46th yearly conference of the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) held in Lagos, recently.
According to him, Nigeria is battling revenue challenge, even as there is need to ensure the sustainability of public debts.
Speaking on theme of the conference, “The National Debt Burden: Causes, Effects and Realistic Economic Solutions”, Akabueze recommended discontinuation of fuel subsidy by June 2023, and suspension of new salary increment for government agencies.
He also stressed the need to rationalise expenditure to minimise further increases of debt as well as a quick implementation of e-customs project to boost revenue collection, while he urged strengthened fight against vandals and crude oil theft.
Akabueze stated that Nigeria’s escalating debt profile had spurred increasing debt service obligation, lower fiscal space for development spending, suspension of capital projects and constraint in the provisions of social amenities.
He said: “To check this challenge, it is important to ensure that public debt is sustainable and for this to be, urgent decisive measures are required in order to avert public debt crisis and these steps are critically around enhancing revenue and then improving expenditure and blocking leakages.”
Earlier, President and Chairman of Council, ICSAN, Taiwo Gbenga Owokalade justified debt as an important aspect of the fiscal economy, but that the size of the debt vis-à-vis the national income as well as the nature of the projects to which the obtained loans are applied are issues of concern.
