The Justice Development and Peace Commission, a Catholic Church group, Sunday, urged the federal government to adopt responsible borrowing practices.
At a one-day workshop held in Gboko, Joe Nkamuke, a representative of the commission, delivered a keynote address highlighting the dangers of excessive borrowing.
Nkamuke noted that Nigeria currently allocates 74% of its revenue towards debt servicing, with the country’s debt rising from ₦97.34 trillion in December 2023 to ₦121.6 trillion in the first quarter of 2024.
He stated the need for responsible borrowing, adding that loans should be used for building infrastructure and enhancing public services, not for consumption or mismanagement.
The Catholic Church expressed concerns that Nigeria is moving towards a debt trap, with high external loan servicing ratios and inadequate revenue generation capacity.
Nkamuke warned that high debt levels could lead to a cost-of-living crisis, inflation, and austerity measures.
Earlier, Rev Fr Isaiah Ter, Benue state coordinator of the Caritas Foundation for Justice Development and Peace, highlighted the foundation’s humanitarian services, including political participation, agricultural practices, and counseling for inmates.
The workshop aimed to promote responsible governance and debt management practices in Nigeria.
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