The Conference of Nigeria Political Parties has urged President
Muhammadu Buhari administration to show responsibility by improving on
accountability and transparency level in the face of increasing
Nigeria’s debt profile.
In a statement issued in Abuja by its Secretary General, Chief Willy
Ezugwu the umbrella body of all registered political parties and
associations in Nigeria noted that “the continued resort to external
borrowing at the slightest challenge is not healthy for the country’s
future.”
The CNPP therefore urged the Buhari administration to look inwards,
reduce cost of governance, and explore other options, including
harnessing non-oil revenues instead of increasing the county’s debt
burdens.
“Recall that Nigeria’s total internal and external debt stock stood at
N12.06 trillion or $63.5 billion as at the end of March this 2015, up
from N11.2 trillion or $67.726 billion in December 2014 according to
figure released by the Debt Management Office (DMO) in June 2015.
“But as at September 30, 2019, according to the Debt Management Office
(DMO), Nigeria’s total public debt jumped to about N26.2 trillion (or
$85.4 billion).
“Recall, however, the Senate had earlier this year also raised an alarm
that Nigeria’s total debt profile would stand at N33 trillion, if
President Muhammadu Buhari got approval for the $22.7 billion foreign
loan request. Unfortunately, the Senate later approved the loan.
“As if that was not bad enough, in the month of March this year, the
same Nigerian lawmakers approved President Buhari’s $2.36 billion loan
request.
“Meanwhile, in April, the International Monetary Fund (IMF) approved
$3.4 billion in emergency financial assistance under the Rapid Financing
Instrument to Nigeria.
“We are shocked that the same administration that have been getting
trenches of Abacha loots returned to it still decided to seek a fresh
$5.513 billion (N2.1 trillion) loan, after an earlier loan of $22.79
billion (N8.5trillion) this same year.
“More worrisome is that the minister of finance, budget and national
planning, had in December 2019 revealed that debt servicing would gulp
29% of the total revenue accruable to Nigeria in 2020.
“According to the Minister, Zainab Ahmed’s disclosure last December, the
Federal Government is currently spending almost a third of its projected
revenue to service Nigeria’s debt. The government is now spending
N2.452trn or 29 percent out of its N8.42trn set as revenue target in
2020 to service debts.
“While there is no country that is not borrowing, when a country
continues to borrow in the face of rapidly dwindling oil revenue, which
is the only major source of income to the country, the future of
Nigerians yet unborn will eventually be squandered by our generation.
“It is about time Nigeria stopped paying lip service to developing
non-oil sectors of the economy in effort to improve revenue earning.
“How can anyone explain the fact that in many parts of the country,
foreigners are harvesting Nigeria’s solid minerals free of charge while
the federal government has continued to borrow to fund the 2020 budget?
“We urge President Buhari administration to immediately cut the cost of
governance, empower farmers by providing security and incentives that
would encourage young people to go back to farming, and block loss of
other non-oil revenue”, the CNPP said.