The Nigeria Employers Consultative Association (NECA) is seeking the adoption of the Public Private Partnership (PPP) in addressing the huge infrastructure deficits as it warned against the nation’s rising debt.
Nigeria total debt stock currently stood around N35.5 trillion as of June 31, 2021, according to the Debt Management Office (DMO) report for the second quarter.
But the Director-General of NECA, Timothy Olawale, who spoke for the employers’ body said that the adopting of PPP policy to finance infrastructure deficit is the best in a very short term and at a cheaper rate.
Nigeria is spending about 97.7 percent of its revenue to service it debt as experts said the country’s current debt position is not sustainable.
Olawale also disclosed that members are more worried about the sharp rise in expenditure profile, against marginal increase in the nation’s revenue.
“We applaud the mammoth infrastructural development being carried out by this administration since inception; however, it is our belief that more can be achieved with the huge natural, human resources and capabilities available within the economy, if managed appropriately.
’Not to say the least, the debt profile currently at N35.5 trillion is worrisome and unsustainable for an economy like ours.
“We are more concerned by the unprecedented and humongous rise in the expenditure profile vis-à-vis the revenue, which grew by over 102 percent between 2015 and 2021 with a trifling rise of revenue by only 15 percent within same period from both non-oil and oil revenue.
‘’The Association is more concerned with a growing economy, where every economic concern generates sufficient revenue that could pay-off reasonably its debt provisions with less impact on its future earnings and accumulate huge foreign reserves.
“As infrastructural provision is critical to any development for any economy with robust and friendly business environment, we call for more collaborative efforts in the form of Public Private Partnership, PPP, in addressing the huge infrastructure deficits, in a very short term and at cheaper rate.
‘’It is our belief that implementing the PPP initiative in provision of the country’s critical infrastructure, decent and sustainable jobs will be provided and desirable number of people will be lifted from the poverty rank even before the desired date of 2030.
‘’More so, there is need to review the rising cost of governance and block the leakages in governance, which is becoming a clog to development,” the NECA chief said.
NECA’s declaration came against the backdrop of a statement credited to Minister of Information and Culture, Lai Muhammed, last weekend that the Federal Government has a lot to show for loans so far taken and that those criticizing the President Muhammad Buhari’s administration for borrowing were insincere.