With a debt profile of N19 trillion, the federal government hinted yesterday that Nigeria cannot afford to borrow anymore.

The Minister of Finance, Kemi Adeosun, who disclosed this at the quarterly Presidential Business Forum held at the presidential villa noted that the country’s budget is significantly lower when attached to the GDP, which is currently at 6 per cent.

She pointed out that the GDP is lower than those of all Nigeria’s peers and that it is the lowest in Sub Saharan Africa and one of the lowest in the world.

The minister lamented that Nigeria’s budget size is too small, which means government can only pay salaries in some cases, even as it does not have money to deliver essential services.

Nigeria’s total debt presently stands at N19.159 trillion as at March 31, 2017 and the Minister of Finance yesterday also stated that the country can no longer borrow.

Noting that there simply isn’t enough money in government to do what government wants to do, the minister contended that even if the federal government plugs all the stealing and all the waste, the budget size will not be big enough.

She added that because people are not paying enough in terms of tax, the government is not collecting enough in terms of tax.

She noted that statistics peg Nigeria’s tax to GDP at 6 per cent, Sub Saharan Africa average 17%, Asia 26%, while most of the emerging market and the advanced countries are at 30-35 per cent.

She said, “Our budget size is too small and what does that mean? It means we can pretty much pay salaries but we cannot deliver essential services. We don’t have enough money on government to do what we should do.

“I know you all will say that is because people are stealing money, wasting money. I’m saying even if you plug all the stealing and all the waste our budget size is not big enough and that is because we are not paying enough tax or we are not collecting enough in terms of tax.

“It is interesting if you look at the statistics; there is no poor country that has a high tax to GDP ratio and there is no rich country with a lower one and so, if we want to move with the prosperous countries, we have to do what they do.

“We will not achieve prosperity for Nigeria if we continue on the tax to GDP ratio that is in the peer group of Afghanistan. I’m sure none of us aspire for Nigeria to become like Afghanistan. We are trying to benchmark ourselves against more develop countries and we must have to address these problems in a more fundamental sense”.

Blaming the problem on over dependence on oil, Adeosun said oil is just one of the country’s resources, which is only 10 per cent of the GDP, adding that the rest of the country’s economy, which is 90 per cent must contribute to our revenue.

She continued: “So, what are we trying to do? We need to mobilize additional revenue to fund our budget. We have got to get our budget bigger and to do that, we cannot borrow anymore. We simply have to generate more revenue, we have to plug the leakages, we have to improve tax collection so that we can manage our borrowing”.

She further explained that the Voluntary Assets and Income Declaration Scheme (VAIDS) is aimed at improving revenue collection rate and generally improving domestic revenue mobilization so that the government can fund the budget sustainably.

The minister continued: “The response we have had from Nigerians since the launch of VAIDS have been encouraging. I think as a nation we have realized we cannot continue in the direction we have been in and there is need for a step change.

“On the government’s side, it puts us under pressure to deliver those services and that will reposition Nigeria so that we will not be so vulnerable as we have been in the past to oil price movements”.

In his remarks, Acting President Yemi Osinbajo said despite the problems, militating against the development of the country, progress is still possible.

He said, “But as we tackle the problems it is really like propelling a car, while the engine is still running. That is really what we need to do and while this vehicle of ours is moving forward we must be doing the repairs at the same time. We cannot fold our arms and say there is a problem with power.

“Look at India, 40 per cent of the firms generate their own power. Yet they have the difficulties that we have but they are making the progress despite those constraints. And I think that we also can make progress despite our constraints. The way to do it is simply what India and any other country will do. It is the commitment to ensuring that we incrementally make this progress.

He said the commitment must come from government and also the private sector, noting that they have both identified certain critical things that must be done.

Osinbajo recalled that when President Muhammadu Buhari launched the Economic Recovery and Growth Plan (EGRP) sometimes in April, one of the things that he emphasized was the fact that Nigerians have made up their minds as to where they are going.

He said, “And think that we have the discipline to be able to do so, but this is a complex environment; it is a complete economy. And I think that we must …the government.

“And I have said this repeatedly, that in some sense we are fortunate to have a leader like the president who at least we know- straightforward, honest and committed to ensuring government expenditure is spent the way it should be spent, and that people don’t do what they like.

“To that extent, I think we have the right environment at least in terms of government discipline and all of that to be able to deliver on the promises that we have made. And all I will just want to say to the private sector is be sure that we have enough willing and able partners. There is no way we can ever be perfect. I mean government is a behemoth, where there are so many problems and issues.

“But, do not doubt for one moment at all, our commitment to ensuring that we are able to deliver on the promises that we have made.