The Islamic Development Bank (IDB) has revealed that Nigeria is spending 80 percent of its total revenues to service debts.
The Islamic Bank also ranked Nigeria as one of the countries in the world using the largest percentage of its revenues for debt payment.
The IDB further stated that this act explains why the nation bleeds economically and this requires urgent expansion.
The resident representative of IDB in Nigeria, Abdallah Kiliaki disclosed this yesterday when he visited the Chairman, Senate Committee on Foreign and Local Debts, Senator Shehu Sani, APC Kaduna Central.
Mr. Abdallah Kiliaki said though Nigeria’s debt Gross Domestic Product, GDP, ratio was low at 17 percent, resources being used to pay the debts were enormous, going by percentages taken on a yearly basis.
Also, the Chairman of the Senate Committee on Foreign and Local Debts, Senator Shehu Sani, APC Kaduna Central, declared that Nigeria’s total debts owed by the states and Federal governments currently stood at $60 billion.
Mr. Abdallah Kiliaki said, “If Nigeria must save itself from getting suffocated by such huge debt servicing with limited resources, there is urgent need for Federal Government to expand the scope of its resources through diversification of the economy into other critical areas, especially agriculture, on the template of value addition from production, to processing and to export.
He also added “My visit is very crucial, because we need to look at the debt profile of a country before we give it new contractual sort of financing.”