‘Nigeria Not Yet In Debt Crisis’, Says Economist Adebajo

The Chief Executive Officer of CFG Advisory, Tilewa Adebajo has stated that Nigeria was not yet successful a indebtedness situation contempt concerns implicit rising borrowings.
Adebajo nevertheless warned that urgent fiscal reforms were indispensable to guarantee semipermanent stableness of the economy.

Speaking connected Thursday greeting during an interrogation connected Arise News’ ‘The Morning Show’, Adebajo explained that portion Nigeria has breached immoderate provisions of the Fiscal Responsibility Act, the country’s indebtedness remains manageable if corrective measures were taken promptly.

“It is to enactment that Nigeria is not yet successful a indebtedness crisis. We’ve breached definite tenets of the Fiscal Responsibility Act, which necessitates urgent fiscal reform,” Adebajo said.

He pointed to the Medium-Term Debt Strategy (MTDS) arsenic a captious instrumentality for ensuring sustainability successful indebtedness management.

According to him, the MTDS, commonly utilized by the International Monetary Fund (IMF) and the World Bank, provides a model to measure and negociate a country’s indebtedness effectively.

“In presumption of that reform, determination was a medium-term indebtedness strategy league that was usually done. It is simply a instrumentality that the IMF and World Bank usage to guarantee that your debts are decently managed successful a sustainable way. And going done the analysis, I deliberation we came retired with immoderate parameters. So what I deliberation is present important is that we request to look astatine immoderate fiscal reforms. Fiscal reforms are much important than taxation reforms,” helium explained.

Adebajo further argued that the government’s accent connected taxation reforms should not overshadow the much pressing request for fiscal subject and structural changes successful nationalist finance.

“In my view, fiscal reforms should person taken precedence implicit taxation reforms,” helium stressed.

Highlighting a affirmative note, Adebajo observed that astir of the government’s indebtedness financing was presently sourced from home marketplace securities alternatively than the Central Bank’s “ways and means” advances.

This, helium said, has helped to supply a measurement of stableness successful Nigeria’s debt profile.