CFG Advisory Slams FG Over Poor Management Of Economy
The CFG Advisory has criticised the Federal Government over poor management of the economy, saying that the cumulative four- year deficit of N38.3 trillion and the recent fresh borrowing of over $100 billion has compounded the economic woes of Nigerians.
...says N16. 3 trillion earmarked for debt servicing higher than combined budgets on Education, Defence, Security, Infrastructure and Health
By Emeka Mamah
The CFG Advisory has criticised the Federal Government over poor management of the economy, saying that the cumulative four- year deficit of N38.3 trillion and the recent fresh borrowing of over $100 billion has compounded the economic woes of Nigerians.
This is even as the N16 3 trillion earmarked for debt servicing from the N8 trillion last year is more than the combined budgets of the Defence, Security, Education, Infrastructure and Health Sectors totalling N14 trillion.
The CFG Advisory made these revelations in its 2025 Half- year Economic Update titled, "Can Nigeria Transition From Economic Stability To Sustainable Growth?" last week.
According to the Advisory, "The gains from subsidy removal are now being diverted to debt servicing, rather than being invested in capital expenditure capable of driving economic growth.
"The money supply has also, increased by 20 percent year- on year, reaching a historic heigh of N19 trillion, thus undermining the Central Bank of Nigeria's, CBN's, ability to meet it's 24 percent year- end inflation target of 2024.
"On the fiscal side,the challenges persist, particularly the Federal Government's inability to fund expenditure budgets. This has led to a cumulative four- year deficit of N38.3 trillion. Making matters worse, total government borrowing has hit the US$100 billion mark.
"Debt service costs have doubled from N8 trillion in 2024 to N16.3 trillion in the proposed 2025 budget, making debt servicing the largest expenditure item.
"This is unsustainable, especially as the amount surpasses the combined budgets for defence, security, infrastructure, education and health, which total N14 trillion. The recent approval of an additional US$21 billion in borrowing is a red flag...
"After two years of painful reforms, the Federal Government must now turn its focus towards the Nigerian people, providing targeted poverty alleviation ,social support and giving the reforms a human face.Both institutions warned that the US$1 trillion economy target by 2030 is only achievable if Nigeria's growth rate increases fivefold from the current 3.1 percent.
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