Economic and financial experts at Nigeria-based economic think tank, the Centre for the Promotion of Private Enterprise, have said that the figures released by the Minister of Finance, Mrs. Zainab Ahmed, during the presentation of the 2023-2025 Medium Term Expenditure Framework have painted a gloomy and disturbing picture of the state of government finances, suggesting that the government is on the brink of bankruptcy.
The centre stated this in its half year economic review, in which it noted that the Nigerian economy over the past six months was characterised by diverse economic vulnerabilities.
According to experts at the centre, the major elements of these reviews are trends in the country’s exchange rate; inflation, GDP debt profile, and fiscal operations of government. According to the CPPE, as high inflation continues to take a toll on businesses, production costs have been increasing; operating costs across sectors becoming elevated, and profit margins declining.
It noted that the frequent collapse of the national grid makes had made it more difficult for many businesses; to continue to sustain their operations, creating serious business sustainability concerns among investors.