As Nigeria draws closer to the 2023 general elections, conversation around the economy is expected to dominate and feature prominently on the political agenda. From worsening macroeconomic fundamentals, unemployment, multidimensional poverty, inflation, hunger among others, the fragile economy continues to have a significant impact on individuals, businesses, and even governments.
At least, two of such challenges suggest that Nigeria may be approaching a potential fiscal crisis. The first challenge is that of inadequate government revenue that is enough to meet government obligation and other development objectives, the other challenge is the growing debt crisis, which has reached an unprecedented level.
In the 2023 budget that was signed into law earlier in January, out of the entire N21.8 trillion budget size, N11.34 trillion was estimated as the budget deficit, while another N6.31 trillion constituting an estimated 29 per cent of the budget was earmarked for debt servicing.
