Post by Henry Emeka (@Emekus)
Why is Tinubu still borrowing?
This part is important: Nigeria has been borrowing heavily for over 20 years, across multiple administrations.
Tinubu is borrowing because:
Government revenue is too low
Nigeria’s tax-to-GDP ratio is one of the lowest in the world.
The government simply doesn’t earn enough to fund:
Salaries
Infrastructure
Security
Subsidies
Debt servicing
Debt servicing is consuming revenue
A huge portion of Nigeria’s income goes to paying interest on old loans.
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