Nigeria reiterates commitment to bridging infrastructure deficit

Mrs. Patience Oniha, Director-General of the Debt Management Office (DMO), on Thursday reiterated the Nigerian Government’s commitment to closing the nation’s infrastructure deficit to attract foreign investors to the country.

Oniha said this while delivering the keynote speech at the 4th Round Table and Panel Discussion on the National Budget at Covet University, Ota, Ogun.

The Nigerian News Agency reports that the institution’s Budget Roundtable for Economic Policy and Development Research (CEPDeR) has been organized. The event had as its theme: “National Budget for Economic Recovery and Sustainable Development in Nigeria”.

Oniha pointed out that most of the critical infrastructure built by the government had been financed with internal and external loans.

He said government borrowing was not necessarily bad if it was used to finance major development projects and programs.

The general director listed some of the infrastructures built by the Government such as the Lagos-Ibadan highway, the second Niger bridge, the train station in Oddo, the Lagos and Enugu airports changed from local to international.

“The Nigerian government has successfully used loans as a tool for economic recovery, to pull the economy out of recession cycles, first in 2017 and second in 2021.

“Government borrowing can also support other sectors of the economy that attract foreign investors and have multiplier effects in the country,” he said.

The CEO further noted that the nation’s current debt-to-GDP profile was 22 per cent, adding that the maximum debt-to-GDP ratio of any country should be 40 per cent.

“The nation’s debt profile is growing rapidly as the country has a huge infrastructure deficit.

“However, the government is working tirelessly to diversify revenue sources to reduce pressure on crude oil, which is prone to volatility,” he said.

Oniha added that government infrastructure spending was aimed at creating job opportunities for young people.

In his welcoming speech, the University’s Vice-Chancellor, Professor Abiodun Adebayo, said that the country’s endowment of natural and human resources has placed it in a position to play a leading role in the world economy.

Adebayo emphasized the need to harness the nation’s socioeconomic potential to achieve significant economic growth.

“The nation’s economic growth is plagued by shortages of essential skills and appropriate technology to fuel growth, energy, foreign exchange, and hostile trade regulations,” the vice-chancellor said.

Country Director, BudgIT, Nigeria, Mr Gabriel Okeowo, emphasized the need for the Federal Government to implement the necessary measures to meet the revenue projection in the nation’s annual budget.

Okeowo pointed out that the country’s low income had hampered the implementation of some of the critical infrastructure.

“The country needs to fix its exchange rate because it is negatively impacting the nation’s debt profile,” he said.