The Director General of the World Trade Organization, Ngozi Okonjo-Iweala, has advised the governors of Nigeria’s 36 states to exercise caution when incurring debts that may impede their ability to deliver on their promises to the people.
Speaking at the induction program organized by the Nigeria Governors’ Forum, Okonjo-Iweala stressed the importance of learning from best practices to effectively fulfill their commitments.
As maintained by PUNCH, She highlighted the concerning state of the nation’s economy and urged the governors to manage their debt profiles and control expenditures while prioritizing infrastructure, education, and healthcare.
According to Okonjo-Iweala, “Nigeria’s gross debt level has climbed from N19.3 trillion in 2015 to N91.6 trillion in 2023. The debt-to-GDP ratio has almost doubled from 20 per cent to 39 per cent over that time period. While the debt-to-GDP ratio may not look so alarming, as revenues decline, the burden of debt servicing has increased dramatically. The debt service to revenue ratio is certainly alarming, at 83.2 per cent in 2021 and 96.3 per cent in 2022, according to the World Bank. This means that at the federal level, after servicing our debt there is little room to pay for recurrent expenditures, let alone investment.”
Okonjo-Iweala also emphasized the need for the governors to address the nation’s economic challenges and fulfill their responsibilities. She stated, “As you take office or return to your governorships, our 222 million compatriots will be counting on you to rise to the occasion. The states are closest to the people: what you do—or don’t do—directly impacts people across the country.”
Regarding the country’s economic activity, Okonjo-Iweala stated, “The International Monetary Fund projects 3.2 per cent Gross Domestic Product growth this year and 3 per cent next year – slightly better than global growth but underperforming the projected growth rates for sub-Saharan Africa as a whole.” She acknowledged the magnitude of the task of nation-building in Nigeria due to its size, diversity, and economic development challenges.
In light of the COVID-19 pandemic and other global crises, Okonjo-Iweala emphasized the need for Nigeria to work harder to avoid further setbacks. She called for a compact between political and business leaders at the state and national levels to pursue pro-growth and pro-development policies, stating, “Nigeria is a country with no social contract, meaning that Nigerian political leaders have never been able to agree with each other to stick to a common set of principles, values, and policies that consistently deliver for their citizens regardless of ethnic group or political persuasion. You have a lot of healing to do – within your states, and between them.”
In his address on entrepreneurship, youth engagement, and wealth creation, Tony Elumelu emphasized the importance of prioritizing youth empowerment. He urged the governors to focus on youth engagement as a means to create a significant impact and catalyze socio-economic development. Elumelu stated, “I urge you all to prioritize youth engagement; it is the sure means to create the most impact and catalyze socio-economic development and growth—for your respective states and Nigeria at large.”
