Tinubu’s Woes Before Wooing Investors
What can the president do when the debt is high and investment is low?
You are in a country where public debt should be of concern to you because it’s way high. President Bola Tinubu knows this and has been travelling across the world to woo investors to explore the opportunities in the country. The president hopes that this will have a significant impact on the country’s woes.
“Nigeria’s total public debt stock as of June 30, 2023, was N87.38tn ($113.42bn). It comprises the total domestic and external debts of the Federal Government of Nigeria, the thirty-six states, and the Federal Capital Territory,” the Debt Management Office said.
“The major addition to the Public Debt Stock was the inclusion of the N22.712 Trillion securitized FGN’s Ways and Means Advances.”
While the debt is record high, the International Monetary Fund stated that the country is not in debt distress, but must generate more revenue to keep the struggling economy alive.
According to Abebe Aemro Selassie, director of the African Department, at the IMF, when you look at the debt in Nigeria, we sense that the stock is manageable in general but it is the debt servicing that is much more difficult.
The IMF director added,:"And the debt servicing is hampered by the country not generating enough non-oil tax revenues. And I think it is by far the most important area of reform and work for any administration in Nigeria."
He stated this during the launch of the October 2023 Regional Economic Outlook (REO) at the week-long Annual meetings of the IMF and World Bank in Marrakech, Morocco.
Meanwhile, the country’s imports and exports have seen increases since the beginning of the year, and also, the gross domestic product slightly grew in H1.
On the other hand, the rising figure of food inflation has been felt in market prices and households. In the same way, the rising naira-to-dollar exchange rate has been taking a toll on businesses and Nigerians alike.
Investment
For the first half of the year, only eight states and the Federal Capital Territory attracted foreign investment. Many of the states plagued by insecurity are not investors' choice.
Four states in the Southwest are investors' preference, with one state in the Southeast where crises pose a threat; two in the North Central and one in the Northeastern part of Nigeria.
Agric investment
The investment in the agricultural sector has declined significantly due to the several shocks thrashing it for many years.
The sector has been impacted majorly by regular flooding, extremist insurgencies, and conflicts between herdsmen and local farmers.
Twentyten Daily Viz captures the drop in investment in the agric sector over the years.
Unemployment
While it has been contested whether Nigeria’s youthful population is a blessing or a curse, a high proportion of the youth are languishing in joblessness.
Twentyten Daily research shows that Nigeria follows South Africa with the highest unemployment rate in countries across the world.
However, you should note that the giant of Africa and the continent’s economic powerhouse, Nigeria, has a population that is three times larger than that of South Africa, as well as the resources.
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