Minister allays fear over Nigeria’s rising debt portfolio

Minister of Budget and National Planning, Udoma Udoma, says Nigeria has a sustainable debt portfolio and could borrow more money if it so wishes.

The Minister, who made this assertion while giving a speech in Indonesia at the recently held annual meeting of the IMF and the World Bank Group, also disputed the wide-spread concern over Nigeria’s debt figures.

In his defence, he described Nigeria as having one of the lowest debt levels on the African continent.

“Nigeria has a sustainable debt profile with ample room to borrow more whenever we may require doing so. Nigeria runs no debt risk and the Debt Management Office carries out an annual Debt Sustainability Analysis to ensure that we stay t+o*

nal Monetary Fund (IMF) issued a serious warning to the country over its looming debt crisis.

The organisation also advised the major oil producer to not be deceived by the increase in global prices but to make haste and lower its growing debt levels as well as urgently diversify its economy.

Note that Nigeria’s debt profile stood at N22.3 trillion as at the end of Q2 2018. The country currently spends about two-thirds of its revenues serving loans.

Similarly, former World Bank Vice President and Nigeria’s presidential hopeful, Mrs Oby Ezekwesili, recently criticised the President Muhammadu Buhari Administration over what she perceived as reckless Government loan deals; particularly Nigeria’s recent borrowings from China.

Recall that Nigeria’s Debt Management Office (DMO), recently disclosed that the country’s debt increased by N9.61 trillion between mid-2015 and the end of 2017.

The DMO also stated Nigeria’s debt is within the sustainable threshold of 56% recommended for developing countries, and that borrowed money is used for developmental purposes.

The Arewa Consultative Forum (ACF), a socio-political organisation of the North, has split over former President Olusegun Obasanjo’s declaration and endorsement of former Vice President Atiku Abubakar, PDP’s presidential candidate for 2019 election.

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ACF reacted to its General Secretary, Mr. Anthony Sani’s description of Obasanjo as “suffering from a dearth of vision, conviction and consistency required of a statesman”, Nigerian Tribune reports.

The northern organisation has suddenly realised that it was not in the character of the forum to attack the views of former Nigerian leaders.

“It is not in the character of the forum to attack the views of former Nigerian leaders.

‘It is not in the character of ACF to attack the views or opinion of the former president and elder statesmen of Chief Obasanjo’s status on national issues in such uncomplimentary manner.

“ Chief Obasanjo as an elder statesman is entitled to his opinion on all issues including democracy, as he had previously endorsed presidential candidates.’’

The reaction to Sani’s remarks was made by the National Publicity Secretary, Mr. Muhammad Ibrahim Biu, on Sunday, Tribune said.

Biu said that the purported interview granted by Sani was his personal views.

`‘It is not in the character of ACF to attack the views or opinion of the former president and elder statesmen of Chief Obasanjo’s status on national issues in such uncomplimentary manner, Chief Obasanjo as an elder statesman is entitled to his opinion on all issues including democracy, as he had previously endorsed presidential candidates.

‘ACF, therefore, dissociates itself from the contents of that interview granted by Mr Anthony Sani as it was not the position of ACF.

The views expressed by Anthony Sani were his personal views as an individual. For the avoidance of doubt, all ACF official statements on any matter come through and from the National Publicity Secretary only.

According to the Nation, Sani attacked Obasanjo’s endorsement of former Vice President and presidential candidate of the Peoples Democratic Party (PDP), Alhaji Atiku Abubakar,

He said Obasanjo is suffering from a dearth of vision and conviction required of a statesman.

Sani, an elder statesman, however noted that with the level of Obasanjo’s inconsistency, he may change his mind again and withdraw his support for Atiku before 2019.

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Sani said Obasanjo as a statesman is expected to be an embodiment of national ideals and moral values for the nation.

He said that the way Obasanjo has conducted himself by tearing his PDP’s card and saying he would no more play partisan politics and forming a movement which he said is third force only for him to convert it to a political party of ADC, culminating in the endorsement of former Vice President Atiku reeks of inconsistency which comes with a dearth of vision and conviction required of a statesman.

“It is democracy in action which at once confirms the saying that the only thing that is permanent in politics is interest; no permanent friends or enemies.

“If you consider what the former President has written about his former Vice President Abubakar Atiku to the extent of saying God would not forgive him if he endorsed Atiku for president, then you can hardly avoid the conclusion that common decency is yet to take root in our democracy, especially when regard is paid to the place of the former president in the order of things in Nigeria.

“President Obasanjo is a statesman who is expected to be an embodiment of national ideals and moral values for the nation. But the way he has conducted himself by tearing his PDP card and saying he would no more play partisan politics and forming a movement which he said is third force only for him to convert it to a political party of ADC, culminating in the endorsement of former VP Atiku reeks of inconsistency that comes with dearth of vision and conviction required of statesmen.

“That may explain why most Nigerians may be curt and dismissive of the former president out of fear that he is just like a reed who can change his mind before the day of elections in 2019, ” Nation quoted Sani as saying.