Institute Cautions Against New Borrowing, Lauds 2025 Revenue Surplus

Chartered Institute of Treasury Management (CITM) has cautioned the national authorities against caller borrowing, saying specified could plunge the state into debilitating debt.

The registrar of CITM, Mr Olumide Adedoyin, stated this yesterday successful Abuja, against the backdrop of caller borrowing and mounting indebtedness by the national government.

According to him, immoderate caller borrowing should beryllium strictly for critical, revenue-generating infrastructure projects and should beryllium connected highly concessional presumption debased interest, agelong tenor from multilateral institutions.

“As astatine mid-2024, Nigeria’s indebtedness representation is characterised by accelerated growth, a changing composition, and important fiscal pressures.”

He, however, commended the national authorities for the 2025 gross surplus, describing it arsenic an accidental to money modulation without further debt.

According to him, the gross surplus of 2025 should beryllium seen arsenic a aureate accidental to money this modulation without resorting to further debilitating debt.

“The Nigerian authorities is close to observe improved revenue, arsenic it is the superior instrumentality to flight the indebtedness trap.

“However, the Rt Hon Speaker Abbas Tajudeen informing is the indispensable counterbalance, highlighting that the existent indebtedness level is unsustainable and threatens the nation’s economical future.”

Adedoyin stated that the way guardant is not done much borrowing, but done extremist fiscal subject and assertive gross generation.

Others, according to him, see strategical absorption of existing indebtedness and creating an situation wherever the backstage assemblage tin thrust growth.

To further halt borrowing, helium said the solution required a multi-pronged attack focused connected extremist increases successful gross and strategical indebtedness management.

He stated that determination was a request for assertive gross mobilisation, adding that the astir important solution was to grow the taxation net.

This, according to him, is by systematically bringing millions of informal assemblage businesses and high-net-worth individuals into the taxation strategy done exertion and data-driven approaches.

He added that determination was a request to absorption connected taxing wealthiness and consumption, not conscionable income, stressing that it was imperative to amended non-oil revenue.

He listed these to see coagulated minerals, agriculture, and the integer economy, which helium said indispensable beryllium prioritised to make export net and taxes.

He besides said that the national authorities indispensable guarantee that the Nigerian National Petroleum Corporation (NNPC) Ltd. meets its afloat remittance obligations to the Federation Account, saying transparency successful the lipid assemblage is non-negotiable.

On indebtedness restructuring, helium urged the national authorities to proactively prosecute with bilateral and commercialized creditors to restructure indebtedness terms—extending tenors and lowering involvement rates to easiness the yearly repayment burden.

He called for a drastic simplification successful authorities waste, corruption, and the bloated outgo of governance, portion urging the merger of redundant agencies and strict enforcement of the Fiscal Responsibility Act.

According to him, the saved subsidy funds indispensable beryllium channelled transparently into productive investments and targeted societal information nets, not absorbed into wide spending.