The Minister of Budget and National Planning, Udoma Udo Udoma, on Wednesday said there was no cause for alarm on the country’s rising debt profile, saying it is sustainable.
Udoma, who gave the assurance after the Federal Executive Council (FEC), reiterated government’s stance on the nation’s increasingly worrisome debt stock over which many analysts have expressed serious concern recently.
He explained: “Our debts are sustainable. We do have a revenue challenge and we are focusing on that. Once the revenues come up, it will be obvious that we don’t have a debt problem at all.
“We are looking at initiatives to widening the tax pays. We are looking at initiatives to increase efficiency in collections. We are looking at a single window, which will help to increase efficiency, customs collections. We are looking at many different ways to improve revenues,” the minister added.
The government’s position on the debt stock came simultaneously as the International Monetary Fund’s (IMF’s) warned the government to reduce borrowing by exploring non-oil sources to beef up the country’s revenue base.
Specifically, IMF advised the Nigerian government to reduce its tax exemptions and incentives list for companies as a strategic option of boosting non-oil tax collections.
In addition, the Fund also tasked government on tax reforms, including raising excise taxes and expanding its scope to cover more goods
The IMF’s Assistant Director, Fiscal Affairs Department, Cathy Pattillo, canvassed these fiscal imperatives on Wednesday during media briefing on the IMF Fiscal Monitor at the ongoing IMF/World Bank Group spring meetings in Washington DC, United States.
