Apart from the worsening insecurity in Nigeria the Church of Nigeria Anglican Communion is worried about the not-too-good state of the nation’s economy, especially the debt profile.
In his Presidential address to delegates to the just concluded Standing Committee Meeting of the Church in Ika Delta State, the Archbishop Metropolitan and Primate of all Nigeria Most Revd Henry Ndukuba said it was a grave concern that debt servicing had increased to 11 trillion naira and surpassed both recurrent and budgetary expenditures.
He noted regrettably that : ” Our debt profile has increased from 63 billion US dollars to over 120 US dollars by year end 2023, with 96% of revenues now going to just debt service alone”.
This the Primate described as frightening as it will limit the funds available for critical sectors ” like healthcare, education and infrastructure “.
Primate Ndukuba therefore called on the leadership of this country to quickly address this development as it could hinder the government’s ability to effectively implement its development agenda.
He also reminded those in power that ” the reliance on external borrowing exposes the Nigerian economy to exchange rate risks “.
This risk he pointed our was already having effect on ” our battered Naira currently exchanging at N1,420 to a $1.”
Another negative effect of high debt levels the Primate said was the “potential to erode investor confidence, particularly among foreign investors, resulting in capital flight, thereby negatively impacting the Nigerian stock market and overall economic stability.
He reminded the country leadership that ” continuous borrowing contributes to inflationary pressures in the economy because as government injects more money into calculation, it drives up prices, affecting the cost of living for ordinary citizens”.