President Muhammadu Buhari’s request for
re-consideration and approval of a 2016-2018 External Borrowing Plan to
enable him secure additional $30 billion loan to finance an estimated
39 infrastructure projects across the country has sparked concern about
Nigeria’s rising debt profile.
Buhari’s borrowing request shut down by the eighth National Assembly
was conveyed in separate letters to President of Senate Ahmad Lawan and
Speaker of the House of Representatives and read at plenary yesterday.
The president’s letter titled: “Request for the National Assembly to
re-consider and approve the Federal Government’s 2016 and 2018 External
Borrowing Plan” read in part: “Pursuant to section 21 and Section 27 of
the Debt Management Office Establishment Act “I hereby request for
resolution of the Senate to approve the Federal Government’s 2016 and
2018 external borrowing plan as well as relevant projects under this
plan…
“The outstanding projects in the plan that were not approved by the
legislature are nevertheless critical to the delivery of government
policies and programmes relating to power, mining, roads agriculture,
health, water and educational sectors.”
But Nigerians have raised concerns that the fresh external loan would
further escalate the country’s loan stock. Some experts who spoke to
Daily Sun, yesterday, urged the lawmakers to throw out request if they
truly have the interest of Nigerians at heart.
According to them, approving the humongous loan was the quickest way
to kill the country as there were no satisfactory repayment strategies
on ground. They argued that for a country already boxed into a debt trap
with over $82 billion debit, taking additional $30 billion credit was
tantamount to committing suicide.
Lead Director, Centre for Social Justice, Mr Eze Onyekpere, said for
President Buhari to have made a request for $30 billion loan means he
did not have the grasp of what simple governance entails.
“What does he need the money to do? This is a disaster. What manner
of president is this? After introducing the Finance Bill to tax
Nigerians more to raise more revenue now, he wants to borrow additional
$30 billion. For what? If this is approved, Nigeria is gone to the dogs.
$30 billion on top of the existing $82 billion we owe? When will we pay
back? How do we pay back? He wants to pile up loans for generations to
pay”, he said.
In his submission, Odilim Enwegbara, Developmental Economist,
described the loan request as the height of insensitivity and crass
demonstration of cluelessness.
“Let him (Buhari) show us the debt sustainability plan. What
infrastructure is $30 billion going to be used for? How do we pay back?
If he says he wants to build infrastructure, the bulk of it is domiciled
in the states.
“Let the states come in here and arrange a PPP to address the
infrastructure gaps we have. The Federal Government can’t continue
borrowing money, and saying it’s addressing infrastructure, when what we
are actually doing is borrowing money to enrich a lot of people close
to government or in government.
“You can’t continue to accumulate debts we can’t pay. Government
should allow restructuring so that regions can build their own
infrastructure,” Enwegbara posited.
The Nigeria Employers’ Consultative Association (NECA) expressed its
fears at the nation’s mounting debt burden with Buhari’s request for
fresh US$30 billion loan.
Director-General of NECA, Mr. Timothy Olawale, said: “Figures
released by the DMO earlier in the year showed that the Federal
Government’s domestic debt profile rose to N15.814 trillion in
September, 2018 from N15.629 trillion in June, 2018 (1.19 % increase).
This figure becomes more worrisome when we look at the total public debt
stock, comprising external and domestic debt of the FGN, the 36 states
and the FCT hitting the US$73.208billion (N22.38 trillion) recorded in
June, 2018. This bourgeoning debt profile calls for concern as our
appetite for debt skyrockets.
“This trend, which is very disturbing, could have a negative effect
on the developmental capacity of Nigeria despite government’s financial
managers’ argument that the rate of increase is within a manageable
limit. While the effect of the increasing debt may not be immediate in
totality, it could be catastrophic in the long term with a chunk of
revenue consumed by debt servicing to the detriment of infrastructural
development. This, sadly, is the current reality as a chunk of the 2020
budget would be used for debt servicing rather than developmental
projects. This trend is not sustainable and could harm the nation on the
long term. We are only appealing that the government should not make it
difficult for the incoming generation to survive,” he said.
He reasoned that Nigeria should be cautious of getting herself
entangled in loans that she would not be able to repay like Kenya,
Zimbabwe and others where China has started taking over their national
Assets.
Also reacting the nation’s Organised Labour warned that Nigeria’s
penchant for foreign loans may draw the country back economically.
President of the Academic Staff Union of Universities (ASUU), Biodun
Ogunyemi, said the administration preponderance for debt was taking the
country’s fortune back to pre-Obasanjo’s administration.
But Chief Executive Officer, Financial Derivatives Limited, Mr.
Bismark Rewane, said there was nothing wrong with borrowing as long as
it was tied to projects that will impact the people.
The economist said if the projects were the ones that could be
identified and will not lead to wastage, then the president was on the
right course.
Rewane dispelled the believe that borrowing was bad, saying what they
are used for should be the questions Nigerians should be asking and not
faulting borrowings in itself.
“External borrowing is an integral part of financing plan for the
current budget. What is important is to ensure that the subsequent
spending is strictly infrastructure-focused. Borrowing should also be
on concessionary terms to mitigate the burden of debt service,” he
argued.
On September 29, 2019, the Dr Bukola Saraki-led shredded Buhari’s
letter requesting a $30 billion loan to build new roads, investing in
outdated power grids, boosting agriculture and other non-oil industries,
and reducing the economy’s dependence on dwindling crude revenues. The
Senators threw out the plan, without even dignifying it with a debate.
The loans, which cover a period of three years, included the sale of
Eurobonds worth $4.5 billion and planned budget support of $3.5 billion.
Popular News
-
Mesothelioma is an aggressive cancer affecting the membrane lining of the lungs and abdomen. Malignant mesothelioma is the most serious o...
-
Happy New Month Nigeria! Welcome to the month of June. As the world searches for a respite from all its troubles since 2020 began, one can ...
-
A US mayor of a small town in Illinois who sent Police officers on Sunday to break up parties amid coronavirus lockdown was left shocked ...
-
For the quarter, added 537,000 residential and small enterprise business internet customers versus 380,000 within the prior year quarter....
-
In the dynamic and fiercely competitive business landscape of today, one thing remains constant: the power of advertising. With the right ...
-
The Osun State Governor, Chief Ademola Adeleke, has escaped a horrific fate, according to a report by Leadership. By a stroke of luck, wh...
-
If issues are treated with the sense of urgency and importance they get in the court of public opinion compared to the conventional court...
-
The military has assured Nigerians that it will work in collaboration with other security agencies to ensure that the 2023 general electi...
-
The United Kingdom (UK) has announced new travel requirements. This is as it said Visa is not enough for people wishing to enter the c...
-
Senate President Ahmad Lawan has talked about the new naira note scarcity. He says there is no need for a time limit on the validity of t...
-
Italy have been crowned champions of the 2020 European Championship after defeating England 3-2 in penalties on Sunday night, July 11. ...
-
“Every improvement contributing to your outstanding experience is our daily motivation.” - Remitano Every product and feature on the Rem...
-
For the quarter, added 537,000 residential and small enterprise business internet customers versus 380,000 within the prior year quarter....
-
SMS marketing is a marketing channel which allows businesses to message customers with marketing messages through SMS, or more commonly kn...
-
Breaking news about iceland country incredible but true if you are interested read the full story iceland team was able to achieve an ...
-
Happy New Month Nigeria! Welcome to the month of June. As the world searches for a respite from all its troubles since 2020 began, one can ...
-
An Israeli professor has claimed that coronavirus will disappear after 70 days with or without intervention. The unproven claims were ma...
-
The Remitano founding team has always maintained the belief and vision that blockchain and cryptocurrencies are a big step forward for s...
-
Would you believe it if someone tells you that cayenne pepper has the power to stop a heart attack within a minute? Believe it or not, thi...
-
Apparently, ginger, a well-known spice we frequently add to different dishes to enhance the flavor, has the power to prevent cancer. But, i...
- bitcoin
- bitcoin mining
- Coronavirus
- dr anu nigeria
- coronavirus china
- Benefit Of Ginger Water
- Bobrisky
- Buhari
- coronavirus cure
- benefits of drinking milk
- Biafran War
- coronavirus death rate
- coronavirus outbreak
- dede one day mansion
- coronavirus update
- History of Biafra
- How To Make Ginger Water
- eri
- How to save your phone battery
- is 5g dangerous
- Kobe Bryant
- Jennifer Aniston
- kobe bryant family
- latest nigeria news paper
- kobe bryant wife
- latest on nigeria news
- naija news
- Malignant mesothelioma
- nigeria news
- Mesothelioma survival rates
- newspaper online in nigeria
- nigeria news breaking
- nigeria news headline today
- nigeria news of the day
- nigeria news paper online
- nigeria newspaper
- nigeria news paper today
- nigeria news today & breaking
- nigeria newspaper online
- nigerianewspaper
- nigeria newspapers
- Regina Daniels
- online dating scams
- Side Effects Of Eating Corn
- t mobile data usage
- online nigeria news
- what is tiger nut
- tiger nuts
- Tyson Fury
0 comments:
Post a Comment