Experts Reveal The Consequences Of Nigeria’s Increased Indebtedness

Economic experts have cautioned the Federal Government against the use of debt and additional tax burden on businesses to fund budgetary provisions, as this can become detrimental to the economy in the long run.

Rather, the Federal Government was advised to implement policies and reforms that will increase investment inflow while other existing businesses are propelled to function in an enabling environment.

This was discussed at an analytical conversation on the 2022 budget hosted by the Lagos Chamber of Commerce and Industry (LCCI) on Tuesday, with the theme ‘Budget Analysis for Business Intelligence.’

Bismarck Rewane, economist/CEO, Financial Derivatives Company, explained that as the government relies more on borrowing to fund its budget, it will result in a higher debt burden and servicing cost, which will weigh on capital expenditure.