A financial analyst and Managing Director of Taurus Capital, Nnaemeka Obiaraeri, said Nigeria can service its debts and also generate $200 billion in annual revenue from non-oil proceeds.
Obiaraeri said this when he was featured on Television Continental on Wednesday.
He said, “Nigeria is broke, inevitably. Very very broke. If you look at the numbers. I laugh when people try to draw this debt GDP analogy equating Nigeria’s economy to that of developed economies.
“Look at the budget performance for 2021, we spent N2.96 trillion servicing existing debts, and as of the first quarter of 2022, we’ve already N896 billion, if you project it, we would be spending about N3.56 trillion in 2022 serving our debts, debt services.
“Now, if you look at that budget, it’s predicated on an N2.25 trillion budget deficit, which will require fresh borrowing, outside the N40+ trillion that we already have in existence.
“A country based on the past budget performance, may not generate up to N6 trillion in both oil and non-oil revenue.
“If you look at it critically, if our revenue profile based on past budget performances is about N5.5 to N6 trillion and we going to be spending N10. 3 trillion on debts and non-debts recurrent expenditure, not on capital projects, that simply means from day one we have an N4 trillion debts deficit on recurrent expenditure, that is not on capital project. This is not sustainable.
“Nigeria has the capacity, annually to generate over $200 billion even from non-oil revenues,” he opined.