Similarly, Dr Aliyu Ilias, a development economist, cautioned against the negative impacts of borrowing on inflation and the cost of living. He advised the government to focus on alternative revenue sources, such as boosting oil output and strengthening trade performance, to reduce reliance on loans. Ilias also criticized inefficiencies in budget implementation, particularly delays in capital projects, which hinder development outcomes.
The human impact of debt was emphasized by speakers at a national debt dialogue in Abuja. BudgIT’s Acting Country Director, Mr Joseph Amenaghawon, explained that borrowing was failing to translate into tangible development, leaving young people at risk of being left behind. He called for stricter monitoring and accountability to ensure loans are used effectively.
Going forward, the government faces critical decisions in managing its fiscal policy, balancing the need for infrastructure and development with the imperative to maintain macroeconomic stability. As Nigeria grapples with its growing debt profile, the success of these efforts will determine whether borrowing leads to sustainable growth or exacerbates existing challenges. Ensuring transparency, effective project monitoring, and prudent spending will be crucial in steering the country toward a stable and prosperous future.
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