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.
The Archbishop Metropolitan and Primate of all Nigeria. Most Rev. Henry Ndukuba, made the church’s position known.
In his presidential address to delegates to the just concluded Standing Committee Meeting of the Church in Ika Delta State, Ndukuba said it was a grave concern that debt servicing had increased to N11 trillion, surpassing both recurrent and budgetary expenditures.
He noted: “Our debt profile has increased from $63 billion to over $120 by year end 2023, with 96 percent 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 the 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 out, was already having effect on “our battered Naira currently exchanging at N1,420 to a $1”.
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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”.
Ndukaba reminded the country’s leadership that “continuous borrowing contributes to inflationary pressures in the economy because as the government injects more money into calculation, it drives up prices, affecting the cost of living for ordinary citizens”.
