For Nigerian government to reduce its rising debt, the Director General of Budget Office of the Federation, Ben Akabueze, has requested that FG should halt salary increment for its workers and remove fuel subsidy.
Akabueze said these measures are needed to sustain the debt, which cost the government N4.22 trillion in terms of servicing in 2021, above the N3.27 trillion spent in 2020. Between January to April 2022, the government also spent N1.94 trillion, which is more than the N1.63 trillion retained revenue.
The Budget Office DG said urgent decisive measures are required to avert public debt crisis. He made this known during the 46th Institute of Chartered Secretaries and Administrators of Nigeria, ICSAN, Annual Conference in Lagos.
“To address this challenge and to relieve the concern on the rising debt and debt service, it is important to ensure that public debt is sustainable and for this to be, urgent decisive measures are required to avert public debt crisis and these steps are critically around enhancing revenue and then improving expenditure and blocking leakages.” Akabueze said.
He explained that discontinuation of the PMS subsidy, suspension of salary increment, and curbing insecurity around Nigeria’s oil pipeline to prevent oil vandalism and theft are solutions to making debt sustainable.
“The critical steps include the implementation of the relevant recommendations and discontinuation of the PMS subsidy by the end of June next year as announced or earlier date.
“Suspension of new salary increases for government agencies and addressing the issues of pipeline vandalism and reducing oil theft through the reintegration of the war against pipeline vandalism and oil theft by security agencies.” The Budget Office DG said.