The Debt Management Office (DMO) has outlined conditions that President Bola Ahmed Tinubu must meet before the government can borrow more money.
The DMO said that the government must increase its projected revenue from N10.49 trillion to about N15.5 trillion in order to be able to borrow more money.
The DMO also said that the government must adhere to existing legislation on government borrowing, such as the Fiscal Responsibility Act 2007 and the Central Bank of Nigeria Act 2007.
In addition, the DMO called for a focus on revenue mobilization initiatives and reforms to increase the country’s tax revenue to GDP ratio.
The DMO also suggested encouraging private sector involvement in funding infrastructure projects through Public-Private Partnerships (PPP) and reducing borrowing by privatizing or selling government assets.
The DMO’s warning serves as a reminder of the challenges posed by Nigeria’s high debt burden.