The Deputy Senate President, Ike Ekweremadu, says Nigeria’s borrowing spree is becoming increasingly unsustainable and urged the nation’s leaders to caution themselves before they mortgage the future of their children.
Ekweremadu made this observation while commenting on the issue raised on the floor of the senate on Wednesday.
It would be recalled that the Debt Management Office, in its official website published that the nation’s foreign and domestic debt stock as of September 30 2018, stood at N22.428trn.
He said: “Some countries are already in danger including Indonesia because of the borrowing they had in the past. For every money we borrow, there must be a day for payment.
“We must therefore be cautious. Yes, it is important that we address our infrastructural needs through appropriate financing but I believe there are other creative ways of funding infrastructure, including Public Private Partnership and concessioning.
“It is time for us to ensure that our debt to GDP ratio must not exceed an acceptable level.”
Senator Dino Melaye, who represents Kogi West, also decried the debt profile of the country, stressing that the nation had borrowed over $40bn in the last four years to stabilise the naira.
He said: “Nigerian government and the parliament should be sorry about the 2019 budget. The Federal Government has spent $41bn to cushion, maintain and stabilise the naira. We no longer have enough foreign reserve to continue to cushion the effects of the devaluation of the naira.
“The price of crude has dropped to $50 from $60. This is very significant and has made the price of crude oil in the 2019 budget unrealistic and unrealizable. There is a drop in the internally generated revenue of the Federal Government.
“There is a drop in the revenue of the Nigeria Customs Service. Federal Government has no money again to subsidise fuel subsidy. In the midst of this entire calamitous situation, how do we fund the 2019 budget?
“Are we going to fund it based on daily contributions? Are we going to borrow again? These are questions begging for answers. I want to announce to Nigerians that the Federal Government will soon deregulate.
“Inflation is rising. Unemployment is on the increase, yet we have a budget that made no provision for the poor masses of this country.
“I challenge the proponent of the 2019 budget and those who support anything presented by the executive to tell me where in the 2019 budget that any provision has been made for the poor, and the unemployed.
Senator Shehu Sani, who Chairs Senate Committee on Local and Foreign Debts, described the nation’s debt profile as alarming, adding that there is need for proper audit of funds allocated to the military and the social investment programme of the Federal Government.
He said: “Funding for the military should be well audited and targeted specifically on areas of need. The budgetary allocation to education is grossly inadequate for the sector.
“Social investment fund should be properly audited. There should be deliberate and realistic means of empowering the youths and creating employment. There is a need to withdraw the military from civil service to enable them to concentrate on the protection of the nation’s territorial integrity.”