Nigeria, not a debt risk nation, business lawyers say

The current perception that Nigeria is a high-risk debt nation that could default on its debt repayment has been debunked by participants at this year’s Capital Market Solicitors’ Association (CMSA) yearly business summit.

Speaking on the theme, “Recent Development in Sub-Saharan African Sovereign Debt: Implications for Nigeria”, the keynote speaker, Razia Khan, argued that Nigeria is actually on the pathway to a strong economic recovery.

She stated that years back the nation along with some African countries like Zambia and Egypt was on the path to debt crisis, with debt rescheduling and the attendant cost.

However, averting the debt crisis, she noted, was a commendable option that was taken by the country.

Khan hailed the current economic reforms, which she said have positioned the country on the way to economic reforms.

Also speaking, the director general of the Debt Management Office, Mrs. Pat Oniha, stated that because Nigeria has been running its budget on deficit, the nation’s debt profile has grown rapidly over the years.

She also noted that Nigeria’s internally generated revenue has been very low, while the cost of servicing debt is very high.

Oniha, however, stated that the nation’s debt is well spread and structured in such a way that Nigeria will not need to restructure the repayment conditions or default in its payment.

Group chief economist, Renaissance Capital Africa, Mr Charlie Robertson stated the need for the nation to develop the local market and reduce the population.

He stated that while the nation’s spending on health, education, and Agriculture has been reduced to next to nothing, these three are actually important for the nation to develop economically.

In his welcome address, the Chairman of the Capital Market Solicitors’ Association, Mr. Chike Obianwu, stated that recent events in the debt profile matters of Ghana, Congo, Egypt and Argentina have become a matter of concern to countries like Nigeria and lawyers in the capital market in particular, hence the theme for discussion.

Other participants who spoke in the same direction include Mr. David Alexander-Gadner, Johannes Juette, Stuart Martty, and Dr. Godfred Bokpin.