Ex-CBN Director Urges FG to Cut Governance Costs and Borrow for Capital Projects
Dr. Titus Okunrounmu, a former Director at the Central Bank of Nigeria (CBN), has urged the Federal Government to adopt strategic measures to reduce the high cost of governance in 2025. In an interview with the News Agency of Nigeria (NAN) on Monday, he highlighted that the increasing cost of governance has led to a sharp rise in recurrent expenditure.
Okunrounmu, who previously served as the Director of Research at the CBN, pointed out that the Federal Government’s debt servicing costs have escalated from N9.8 trillion in 2023 to N12.1 trillion in 2024. He stressed that the government should focus on borrowing exclusively for capital expenditure projects that would generate returns, ensuring that the proceeds from these projects can cover the repayment costs.
On a positive note, Okunrounmu commended the Federal Government’s efforts to revive the Port-Harcourt refinery, which has resumed production of refined petroleum products. He described the revival as a significant boost to Nigeria’s economy, noting that it would reduce the country’s dependency on importing refined products.
“This is a welcome development, as it will help stop the export of crude oil for the importation of refined products,” Okunrounmu said. He added that Nigeria could also capitalize on exporting refined petroleum products to West African countries, generating additional revenue for the country.
The former CBN director further advised the Nigeria National Petroleum Company Limited (NNPCL) to ensure regular maintenance of the refineries to maximize their production capacity and ensure consistent service delivery.
