Sunday, March 7African Business News
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Tag: Buahari

Nigeria: What Manner of Budget Cut?

Nigeria: What Manner of Budget Cut?

Economy
Nigeria’s total debt stock as at December 31, 2019 stood at about N27.4 trillion according to data obtained from the Debt Management Office (DMO). That figure surely must have increased as the largest country in Africa both by population and GDP has continued to borrow to keep the wheel of its economy running. Since the economy is swimming in troubled waters due to oil price crash and the budgeted $57 per barrel slashed to a new benchmark of $20 per barrel, coupled with low revenue generation from the non-oil sector and tax as the Covid-19 pandemic ravages, the surest way to finance the marginally reviewed budget, according to government, is to borrow. But analysts and economic pundits have raised the alarm that the decision to keep borrowing to satisfy the appetite of government...