Former Nigeria President, Olusegun Obasanjo, has said Nigeria faces the risk of impending bankruptcy, over the continuous accumulation of debt by the government.
Obasanjo expressed this while talking as a keynote speaker at the ‘Why I am Alive’ crusade on Friday in Lagos.
As indicated by him, the accumulating obligations would leave a weight for people in the future, who might need to pay such advances.
Obasanjo said as at 2015, Nigeria’s all out outer obligation was about $10.32bn. By March 2019, he asserted the nation’s outside obligation had expanded to $81.274bn.
“Such a situation talks about an impending bankruptcy. No entity can survive while devoting 50 per cent of its revenue to debt servicing.
“It has recently been pointed out that in 2018 that total debt servicing took over 60 per cent of government revenue.
“What’s more, we are not doing enough to address the fundamental, deep-seated and structural challenges that inhibit the expansion of our economy,” Obasanjo said.
Obasanjo added that to intensify matters, the present organization was right now trying to add another $29.6bn advance to “our as of now overburdened obligation portfolio.”