The World Bank’s country director for Nigeria, Mathew Verghis, says Nigeria’s main fiscal problem is low revenue mobilisation rather than high debt. Speaking on Channels Television on Friday, Verghis argues that Nigeria’s debt level—measured against the size of the economy—is moderate by international standards and lower than that of many peer countries. He contrasts Nigeria’s situation with countries such as Ghana, which is described as being in a debt restructuring process.
Verghis says borrowing can be necessary to finance investments that produce benefits over time, noting that countries borrow to fund projects that improve growth and living standards and, ultimately, increase the ability to repay. He cites the need for large upfront spending to expand energy access for millions of Nigerians, which he says could strengthen economic prospects and help repayment later.
Overall, Verghis emphasizes that improving government revenue collection is the immediate priority for Nigeria’s public finances. He links stronger revenues to greater capacity for spending on infrastructure and human capital, job creation, and poverty reduction. The comments align with the World Bank’s recently announced six-year country partnership framework, which focuses on job creation.
