Russia-Ukraine War, Others, Cause Of Nigeria Huge Borrowing – Buhari

Outgoing President of Nigeria, Muhammadu Buhari has blamed external factors which included Russia-Ukraine war as the cause of the Nigeria Government under his leadership resorting to huge borrowing to provide basic infrastructures.

President Muhammadu Buhari stated this on Monday in Lagos State while speaking during the commissioning of Dangote refinery.

According to President Muhammadu Buhari, the Russia-Ukraine war, crash in global crude oil prices and coronavirus hindered the government ability to provide basic infrastructures to Nigerians without resorting to huge borrowing.

President Muhammadu Buhari thereafter appealed to the private sector to not only fill in the gap created by the global crisis in the area of infrastructures but the private sector should also strive to fill the vacuum created in all the critical sectors of the economy.

Russia-Ukraine war began in February 24, 2022. President Muhammadu Buhari has been in power since May 29, 2015.

Nigeria Employers Consultative Association, NECA, in January 2023, had said in Lagos, that Nigeria’s debt profile may hit ₦77 trillion in June 2023.

This as KPMG, a consulting firm had said earlier in this month of May, that with the Federal Government of Nigeria, FGN revenue to GDP ratio of 4.49 per cent as of December 2022, “Nigeria’s debt service to revenue ratio may surpass 100 per cent in 2023, which will limit the fiscal space and the government’s ability to pay for its operations and functions, unless urgent measures are taken to build revenue”.

The commissioned Dangote refinery is said to have the capacity to produce or process 650,000 barrels of crude oil per day in a single train.

Dangote group said with the commissioning of the refinery; “There will be constant availability of high-quality fuels for our transportation sector, the refinery will also make available to our industries vital raw materials for wide range of manufacturing.

“Our Group’s corporate vision is driven by our mission to produce what we consume and to promote self-sufficiency in the basic needs of our people.

“We decided on a plant designed with state-of-the-art technology and a scale in a capacity that will be a game-changer in Africa and the global market.

“Overall, we are committed to operating our plant in line with int’l best practice, recognising the importance of protecting the environment, we have adopted stringent environmental, health & safety policies.”

Dangote refinery is located in Ibeju-Lekki, Lagos, covering an estimated land area of approximately 2,635 hectares. The refinery is said to be powered by a 435-megawatt (MW) power plant.