A former Deputy Governor, Central Bank of Nigeria (CBN), Professor Kingsley Moghalu has warned the federal government to cease all new foreign borrowing, considering the government’s declining revenue profile.
Moghalu, who is the Founder & President, Institute for Governance and Economic Transformation in the United States, made the proposition while delivering a paper at the 5th Goddy Jidenma Foundation Public Lecture in Lagos.
He said that further indebtedness was not sustainable and would likely lead to a debt crisis.
He also called on the federal government to establish a “hedging” arrangement to manage the risks of oil price volatility.