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Professor Ndubuisi Ekekwe Addresses Nigeria’s Financial Challenges Amid Rising Debt Servicing Costs

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Professor Ndubuisi Ekekwe, a renowned entrepreneur and investor, has voiced his concerns over the recent financial report released by the Central Bank of Nigeria (CBN). The report reveals a significant increase in the federal government’s expenditure on debt servicing in the first five months of 2024, amounting to approximately $2.2 billion.

The CBN’s financial report indicates that the debt servicing cost from January to May 2024 is about 96.32% higher than the $1.12 billion spent during the same period in 2023. The monthly breakdown of the debt servicing expenditure is as follows:

  • January: $560.52 million
  • February: $283.22 million
  • March: $276.16 million
  • April: $215.20 million
  • May: $854.36 million

Commenting on the report, Professor Ekekwe remarked, “This is where we are as a country according to the Central Bank of Nigeria. Someone may argue that Nigeria was saving money via fuel subsidies. However, in the Igbo Nation, if a bird leaves the ground and perches on the ant-hill, the elders will say that it is still on the ground. Nigeria may not be allocating money for subsidies (it claims), but it is allocating more for debt servicing as a result of decisions around Naira floating and fuel subsidies! Like I noted, nothing has changed, except the style!”

Professor Ekekwe emphasized the necessity for Nigeria to shift its focus from financialization to tangible production. “Good people, if anyone tells you that Nigeria can be made whole through financialization, there is a bridge available to buy. We must make things (modern and old) for Nigeria to rise, and our leaders must provide platforms for such to happen. Those platforms include electricity, security, and rule of law! Simply, someone must be annoyed and angry that for 60 years we cannot figure out how to provide electricity to citizens and companies,” he stated.

Professor Ekekwe’s comments highlight the critical need for sustainable infrastructure and systemic reforms to foster economic growth and stability in Nigeria. His call to action urges leaders to address fundamental issues that have long hindered the nation’s progress.

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