By Uzair Adam Imam
The Director, Monetary Policy Development, Central Bank of Nigeria, Dr Hassan Mahmud, said the high debt would be a burden on future generations in the country.
Dr Hassan Mahmud disclosed this on Wednesday at the 63rd National Conference of the Nigerian Economic Society (NES).
The 3-day conference, which started on Tuesday at the Maryam Abacha American University of Nigeria, Kano, was themed “Fiscal Sustainability and Policy Response for Economic Recovery in Nigeria”.
It was gathered that the country’s public debt in the first quarter of 2022 had risen to N41.6 trillion from N39.56 trillion recorded in December 2021.
However, the debt by the Federal Government has continued to throw a big threat to future generations as it may impinge on the country’s economic growth.
He said, “When debt is high, it becomes a burden on future generations as it leaves no room for borrowing when there is a shock.
“High debt can increase the cost of private sector borrowing, crowding out viable private sector investment and high servicing requirements.”
Mahmud said despite the challenges, the public debt is an important instrument for the economy, adding that the country’s borrowing plan is guided by debt sustainability.
He added, “Nigerian borrowing plan is guided by the debt sustainability threshold to ensure debt carrying capacity does not impinge on growth.”
The event hosted many academicians and politicians from all over the country, many of whom also commended the conference and its organisers.