The
details of statistics obtained from the Debt Management Office has
showed that the Federal Government's domestic debt, stood at N10.6tn as
of June this year, up from N8.4tn a year ago.
Civil rights groups on Friday berated the President Muhammadu
Buhari-led administration for incurring a N2.2tn domestic debt in the
last one year.
The groups, in separate interviews on Friday with Punch Newspaper,
said that there were no visible impacts of the borrowed money on the
country in the period.
It was reported that statistics obtained from the Debt Management
Office showed that the Federal Government’s domestic debt stood at
N10.6tn as of June this year, up from N8.4tn a year ago.
According to the report, the country’s total debt liability rose to N16.29tn in June 2016 from N12.12tn in June 2015.
FG borrowing to pay salaries — Social Action
Expressing concern about the sharp increase in the country’s debt
profile, the Head of Abuja Social Action, Vivian Bellonwu-Okafor, said
the only response of the administration to the economic recession was “to borrow more money.”
She said that the group was concerned about the circumvention of the laid down legal provisions for loan acquisitions.
Bellonwu-Okafor stated, “The Fiscal Responsibility Act, which
outlines the democratic steps that should accompany any loan, is not
being respected and so in this regard, loans are taken in a most shoddy
and blanket manner without any clear purpose or project line tied to
such acquisition(s) as well as cost-benefit analysis, as stipulated by
the FRA.
“It is thus not surprising that government has not only taken
but also advanced loans for recurrent items such as payment of salaries,
sponsorship to foreign trips and conferences etc; this is in clear
violation of the FRA which states that loans shall only be acquired for
capital expenditure(s).”
She said that it appeared that the government was hiding under “a superfluous guide of so-called recession to embark on unrestrained and unmanageable borrowings.”
The head of Social Action stated that such an approach was “a false solution to the economic problems of Nigeria,” adding that the government was simply postponing the evil day.
Bellonwu-Okafor said, “Debt servicing will soon completely wipe
out the country’s capital allocation. This free walk into another
debt-trap should, with all experiences of hindsight, be avoided.
“The burden of debt falls on the shoulders of innocent
citizens. Nigeria has the wherewithal both in human, natural as well as
material and intellectual resources to have a thriving and flourishing
economy without undue recourse to dependence-borrowing.”
No visible impact - CD
On his part, the President of Campaign for Democracy, Abdul Usman,
said that the borrowing did not show desirable performances by the
administration.
According to him, the President and his cabinet of ministers should
be held accountable not only in matters that have to do with
corruption, but also on debts.
He stated, “Nigerians have never had it this bad and are losing
faith in the change promised by the administration. There is hunger
almost everywhere in the land. Citizens will want to see published
documents or Mr. President should address the nation as we have yet to
see the positivity on the budgeted N500bn social welfare.”
‘Buhari’s Govt not creative’
The Executive Secretary of the Anti-Corruption Network, Ebenezer
Oyetakin, in an interview with Punch Newspaper, said the craze for
borrowing had shown that the administration was not creative.
He stated that it was unfortunate that the government, which based its campaign on “change” had reverted to the old practices, which Nigerians voted against.
Oyetakin stated, “The thrust of the change is expected to be
largely in the way we handle the economy. The craze for borrowing simply
shows how uncreative we are and the lack of innovative thinking
economically.
“What would have happened if we were Republic of Cuba that was
and is still under total economic, commercial and financial blockade by
the USA and its allies for 55 Years? What will happen if the entire
world refuses to lend us money? I am against our craze for borrowing as a
nation.”
N2.2tn domestic borrowing used to fund budget — Minister
But the Minister of Finance, Mrs. Kemi Adeosun, while responding to
enquiries from one of our correspondents, justified the increase in the
debts.
