By Fatima Saka
Senator, Dr. Jimoh Ibrahim Folorunso emphasized on the debt service of Nigeria, says debt service is important and its source integrity of payments.
The Distinguished Senator stressed that the global GDP is 235%, Nigeria debt ratio to GDP is 30%. “We are far far away from the global debt to GDP ratio. In America it is a 135% debt ratio, in London, the UK is 105% ratio to the GDP.
The Senator Representing Ondo South Senatorial District made disclosed during an interactive session with the newsmen on Saturday, immediately after the Senate passes the 2024 budget at the National Assembly Complex.
Debt Service
Speaking on the debt issues and borrowing, Senator Ibrahim said approval of external borrowing is the source of revenue to fund the budgets.
He added that there are two ways to fund the budget, the external borrowing and the domestic means.
The Senator explained that the domestic means is the sourcing income from taxes and proceeds from petroleum products, adding that if this is not enough then external borrowing can be incurred. “As long as our GDP is captured.
“The debt ratio, the servicing ratio to debt is about 90% or thereabout, meaning that, that is where we have constraints in continuing to service debt that is very high for Nigeria.”
Speaking on the implementation of the budget, the Senator Representing Ondo South Senatorial District expressed that the budget will work with implementation captured by the president. Adding the president is proactive. It is not that someone will go and buy “Gucci shoes”.
Naira/Dollars Rate
On the dollar rate, the President Tinubu settled for 700 naira to a dollar, and the National Assembly considered and passed 800 naira to a dollar, speaking on that, Dr Ibrahim said: “In order to increase revenue, because we do know that weather forecasts the price of petrol.
“So obviously speaking, at this time between now and April, the price of oil will rise and we cannot close our eyes to that and that’s why we adjusted our figure.”
