• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Business News Business

Borrowing to service debt portends severe vulnerabilities for the Nigerian economy – Muda Yusuf

William Ukpe by William Ukpe
July 25, 2022
in Business
CPPE, Muda Yusuf

Dr, Muda Yusuf. Director/CEO CPPE

Share on FacebookShare on TwitterShare on Linkedin

Financing of the operations of government including personnel costs, overhead costs, capital expenditure and even part of the servicing of debt will have to come from additional borrowing which portends severe vulnerabilities for the Nigerian economy.

This was disclosed by Dr. Muda Yusuf Founder/CEO, Centre for the Promotion of Private Enterprise, CPPE in a statement viewed by Nairametrics titled, “Half Year Economic Review”.

Muda stated that FG’s fiscal outlook poses significant risks to macroeconomic stability amid heightened inflationary pressures, depreciating currency and increasing exchange rate volatility.

RelatedStories

Israel-Iran conflict could trigger drop in FDI, portfolio inflows – SBM Intelligence warns Nigeria, West Africa 

Israel-Iran war poses risks to Nigerian investments, interest rates – CPPE 

June 17, 2025
Dr. Muda Yusuf, CPPE

CPPE rejects raw materials bill, warns it could harm Nigeria’s exporters, manufacturers 

April 21, 2025

What Dr Yusuf is saying

According to Muda, the figures released by the Finance Minister, Mrs. Zainab Ahmed during the presentation of the 2023-2025 Medium Term Expenditure Framework painted a gloomy and disturbing picture of the state of government finances and suggests that the government is on the brink of bankruptcy.

“Debt service to revenue ratio for the first four months of the current year is over 100% (one hundred per cent). The implication of this is that the actual revenue of government over the period is not sufficient to service debt.

“Therefore, financing of the operations of government – personnel cost, overhead cost, capital expenditure and even part of the servicing of the debt will have to come from additional borrowing. These portend severe vulnerabilities for the Nigerian economy.

“The fiscal outlook is clouded by elevated downside risks in the near term, driven largely by the huge burden of financing petrol subsidy, fiscal leakages, and unsustainable public debt trajectory. The outlook poses significant risks to macroeconomic stability amid heightened inflationary pressures, depreciating currency and increasing exchange rate volatility,” Yusuf said.

He added that despite increased GDP growth of 3.11% in the first quarter of 2022 which marked the sixth consecutive quarters of GDP growth in the Nigerian economy “the increasing economic headwinds may dim the growth prospects for subsequent quarters”.

What you should know

  • Nairametrics recently reported that recent data released by the Ministry of Finance shows that Nigeria’s debt service cost surpassed its revenue in the first four months of the year, debt service gulped a sum of N1.94 trillion between January to aril 2022, against revenue of N1.63 trillion, citing that Nigeria spends 118% of revenue on debt service

Follow us for Breaking News and Market Intelligence.
Tags: CPPEMuda Yusuf
William Ukpe

William Ukpe

For further inquiries about this article contact: Email: william.ukpe@nairametrics.com or outreach@nairametrics.com. Twitter: @_sirwilliam_ @nairametrics.

Related Posts

Israel-Iran conflict could trigger drop in FDI, portfolio inflows – SBM Intelligence warns Nigeria, West Africa 
Economy

Israel-Iran war poses risks to Nigerian investments, interest rates – CPPE 

June 17, 2025
Dr. Muda Yusuf, CPPE
Business News

CPPE rejects raw materials bill, warns it could harm Nigeria’s exporters, manufacturers 

April 21, 2025
CBN, forex
Economy

CPPE commends CBN’s decision to pause rate hikes, calls for future reductions 

February 21, 2025
Dr. Muda Yusuf, CPPE
Business News

Expert calls for halt in interest rate hikes by CBN’s Monetary Policy Committee 

February 18, 2025
Dr. Muda Yusuf, CPPE
Economy

CPPE highlights factors that will drive Nigeria’s exchange rate stability in 2025 

December 30, 2024
Dr. Muda Yusuf, CPPE
Business News

Nigerian banks focus on commissions, neglecting real economic growth – Dr. Muda Yusuf 

November 16, 2024
Next Post
Harmony Network Hacker Moves $21 Million of Stolen Funds to Tornado Cash

Blockchain music streaming platform, Audius, gets hacked for $1.1 million

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • President Tinubu summons emergency FEC meeting to honour late Muhammadu Buhari 
  • Africa needs gas as a transformational fuel for development – Sahara Group 
  • FG to pilot 6-month training for 3,000 artisans in 10 construction trades across 3 states  

Follow us on social media:

Recent News

President Tinubu appoints 6 Chief Medical Directors for federal hospitals on 4-year terms 

President Tinubu summons emergency FEC meeting to honour late Muhammadu Buhari 

July 13, 2025
Africa needs gas as a transformational fuel for development – Sahara Group 

Africa needs gas as a transformational fuel for development – Sahara Group 

July 13, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics