The World Bank has said Nigeria’s biggest fiscal challenge is low government revenue rather than excessive borrowing, amid growing public concern over the Federal Government’s rising debt profile.
The bank described Nigeria as a moderately indebted country, stressing that the country does not face a high indebtedness problem but instead struggles with inadequate revenue generation.
Speaking during an interview with Channels Television on Friday, the World Bank’s Country Director for Nigeria, Mathew Verghis, said Nigeria borrows for the same reasons as many other countries—to finance development and meet economic needs.
According to him, the priority should be expanding government revenue rather than focusing solely on borrowing, noting that stronger revenue mobilisation would support improved economic outcomes, create more jobs and help reduce poverty.
Verghis maintained that increasing revenue would strengthen the country’s fiscal position and enhance its ability to deliver sustainable development.
