Business
‘75% of Nigeria’s revenue used to service loans’
The Islamic Development Bank (IDB), Tuesday, painted a grim picture of the Nigerian economy, disclosing that the country uses about 75% of its revenue to service local and foreign debts incurred over the years.
The bank stated this through its resident representative in Nigeria, Mr. Abdallah Mohammed Kilaiki, during a courtesy visit to the Chairman of the Senate Committee on Local and Foreign Debts, Senator Shehu Sani.
According to him, despite the fact that the country’s debt to gross domestic product (GDP) ratio was favourable, servicing 75 percent of revenue on debts was unfavorable.
“…The amount the country is using to service debts is 75 to 80 percent of its revenue. The domestic resources being used to service loan is high,” he said.
Read also: Nigerians spend $2b annually on education abroad
Kilaiki however advised the Federal Government to diversify the country’s revenue base while suggesting the upward review of taxes.
Against popular believe, the IDB official also disclosed that the visit northern governors paid to its headquarters in Jedda has nothing to do with loans.
“The Northern Governors only pleaded with the IDB that Nigeria needs to be helped on the internally displaced persons (IDPs). We don’t deal with states directly, “he said.
In his response, Senator Sani said the total debt of the country stood at $60billion, urging the bank not to invest on white elephant projects.
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