The chamber warned it could worsen Nigeria’s infrastructure challenges and deepen debt sustainability risks.
In a statement, Chinyere Almona, LCCI’s director-general, cautioned that rising debt servicing costs may soon surpass capital expenditure allocations in the 2025 federal budget.
TimesNow.com.ng earlier reported that President Tinubu requested permission to borrow $2.209 billion from external sources, and the Senate and the House of Representatives approved.
According to Tinubu, the $2.209 billion loan request would help to finance the deficit in the 2024 budget.
Punch reports that Almona, in her statement, stressed the need for adequate safeguards against risks.
She said:
Almona expressed concern about the potential impact of external currency shocks caused by the depreciation of the naira against the dollar, which could complicate debt servicing.
She noted that the Central Bank of Nigeria (CBN) has been struggling to boost foreign exchange supply to stabilise the naira, with little success.
Given these challenges, she stressed the importance of the government exercising caution in its borrowing practices, the Cable reports.
Almona also urged the authorities to prioritise transparency and accountability in the use of borrowed funds to ensure effective utilisation.
TimesNow.com.ng had earlier reported that the news of China taking over Uganda’s Airport stirred heated reactions from Nigerians as many fear a similar fate awaits Nigeria.
Although details of Nigeria’s agreement with China are publicly not available, DMO data shows Nigeria is indebted to five countries worth over N1 trillion.
As expected, China accounts for the highest debt stock by countries and the debts were obtained through bilateral agreements.
Source: TimesNow.com.ng
