The Association of Bureaux De Change Operators of Nigeria (ABCON) has advocated for reforms that will reduce government spending and also curb the rising trend in the nation's public debt.
This was contained in its 2nd Quarterly Economic Review for 2021, noting that the vulnerabilities identified with the rising debt profile exposed the country to the risk of future high economic and development costs of having to deal with large debt overhangs.
ABCON said: "The fact that remarkable economic recovery is not certain and the rather unstable state of financial markets is indicating that the country could be on the verge of a major debt crisis."
In its recommendations on how to tackle the rising profile of the nation's public debt, the association said: "There is therefore a serious need for the introduction of fiscal reforms that would scale down government spending and to consider restructuring the loan profile and especially properly examine the conditions tied to Chinese denominated debts.
"We recommended a season of economic austerity to replace the increased debt pile-up for the coming generation.
"Moderation of governance and other administrative costs along with blocking loopholes/leakages from inflated contracts will more than satisfy the need for increased debts."
ABCON also called for realistic measures to redress the ever-existing and increasing margin between the official and parallel market exchange rates.