President of the African Development Bank, Akinwumi Adesina, has urged Nigeria to decisively tackle debt challenges, adding that debt service costs and poor foreign exchange policies are the major setbacks to the country’s economic growth.
Adesina said this during the Mid-Term Ministerial Performance Review Retreat, which was held virtually and physically at the Presidential Villa.
He said, “Nigeria must decisively tackle its debt challenges. The issue is not about the debt to GDP ratio as Nigeria’s Debt to GDP ratio at 35 per cent is actually still moderate.”
“The big issue is how to service the debt and what that means for resources for domestic investments needed to spur faster economic growth.”
“The debt service to revenue for Nigeria is at 73 per cent. Things will of course improve as oil prices recover, but the situation has revealed the vulnerability of the Nigerian economy.”
“To have an economic resurgence, we need to fix the structure of the economy and address some basic fundamentals. Nigeria’s challenge is revenue concentration.”
The AfDB president further advised the government to boost productivity in the non-oil sector with the right fiscal and macroeconomic policies.