WATCH THE VIDEO HERE Dr. Biodun Adedipe, a development-focused economist, has expressed that he is unfazed by the external debt servicing figures for 2024, emphasizing instead the importance of effectively utilizing external borrowings to execute projects. He shared these insights during a ‘Talknomics’ program on NaijaonpointTV, hosted by Ugo Obi-Chukwu, CEO of Naijaonpoint, titled “CBN and the Naira: The Reasons Behind FX Interventions.” When asked about his concerns regarding Nigeria’s rising external debt obligations, which reached $45.78 billion in 2024, Dr. Adedipe responded: “From my perspective, I am not overly worried about debt. Debt is crucial for infrastructure development. It is not solely about borrowing; it is about how we allocate the borrowed funds.” Watch the full video: He drew comparisons with advanced economies, such as the United States and countries in East Asia, stating, “None of the advanced nations achieved world-class infrastructure without incurring debt.” Dr. Adedipe highlighted a critical gap in Nigeria, stressing the need to ensure value for money by effectively executing projects funded by borrowed capital. He concluded by asserting, “The focus for Nigeria should be on value for money. If we must borrow at all, let us borrow to fund projects.” Nigeria’s external debt experienced a substantial increase of 83.89%, rising from N38.22 trillion ($42.50 billion) in 2023 to N70.29 trillion ($45.78 billion) in 2024. On a quarter-on-quarter basis, external debt rose by N1.4 trillion, increasing from N68.89 trillion ($43.03 billion) at the end of September 2024 to N70.29 trillion ($45.78 billion) in December 2024. Nigeria’s domestic debt experienced significant growth, rising by 25.77% from N59.12 trillion ($65.73 billion) in 2023 to N74.38 trillion ($48.44 billion) in 2024. Source: https://youtu.be/wjAH21eem38?si=A6txVVuuN69mpa4Y
Why I am unfazed about Nigeria’s $45.78 billion external debt figure – Dr Biodun Adedipe
