No doubt,Nigeria is most blessed African country with huge respect and dignity to her from around the World.
More recently ,unfortunately, Nigeria became submerged in economic recession , despite all her available socio- geological resources, thereby lured in debt believed to mortgage the future of generations with its pangs felt already.
In short, debt financing has been a subject in the democratic governance pronounceable in the country, as really, elected people in political authority insist engaging and embarking on positive socio-economic ventures, there will be a need to imbibe borrowing either internally or externally, with certainly, both debt systems are a tool.
On September 26,2021, a former House of Representatives who represented Iseyin/Itesiwaji/Atisbo,Hon. Lanre Agoro alerted technically mathematically on “Politics Palava” , a political show on Solution 93.9FM that each Nigerian had #170,000 as an individual’s debt if the country were to clear its external debt.
Yet, the present outgoing administration led by Muhammadu Buhari telecast on October 1st,2022 stressed that his begun social programmes will be made to function at all cost, dwelt on sizeable borrowing. Is this not an eye-opener that inflation and poverty will continue?
The director,Debt Management Office, Patience Oniha said at a public presentation on January 4,2023 on the 2023 Budget at the National Assembly that new borrowing of #10.57trillion was captured in the 2023 Budget. The DMO office analyzed that if divided by an official exchange rate put at #422 to an American dollar, 200 million Nigerians would have inherited #384,864 debt per person when the Buhari led administration winds down on May 29,2023, signalling the country’s debt has accrued to #77trillion.
The Chief Executive Officer, Cowry Assets Management Limited ,Johnson Chukwu said if the government fails to exercise caution on how it funds budget deficit , the private sector would be seriously weakened in its capacity to drive the economy, meanwhile, the national debt is #22 trillion .
Johnson added as long as the federal government continues to borrow , the implication is that there will be crowding out of the private sectors, to fund the real sector. The Economist warned that Nigeria may head the way of Ghana if it fails to address its appetite on “unregulated borrowing”
Worrisomely, Budget office of the Federation’s recent data analysis indicated that total budget deficit is set to hit #47.43 trillion under President Buhari. The analysis covers the actual budget deficits and projections for the 2015 to 2023 fiscal year. The figure indicates, deficit financing has risen by 370.54 percent from #2.41 trillion in 2016 to #11.34 trillion in 2023.
Findings indicated that an economic professor Akpan Ekpo explained that government budget deficit shows that expenditure has eclipsed the revenue, because they have to borrow, therefore, expanding a deficit.
The Minister of Finance and Budget Planning under Buhari Administration ,Zainab Ahmed in 2022 said borrowing has been of great concern resulted in a lot discussions, believed the total size of the borrowing in the country , is still within healthy and sustainable limits. Is this true? Any functional sectors in the country with huge loan incurred from 2015 to 2023, aside railway annexation with Chad and Niger and across the country? Is it Power? Energy? Education?Health? Road infrastructure? Security? Trade indigenization? We are in trouble!
The question is , can month’s time inaugurating administration for the president-elect, Asiwaju Bola Ahmed Tinubu sustain with loan obtainment? If he endures probably of virtue of his economy wisdom and global influence, can state administrators follow suit? Hilariously, Oyo State Government led by Engr. Seyi Makinde in two weeks ago had an approval of a ‘soft loan’ of #50 Billion aside the 50 million Euro loan from French Government and the previous, all in the name of economy and social infrastructural building and rehabilitation , may God deliver us. Thank God both the rich and poor bear the brunt . Is this the way-forward as we approach another governmental transitional era from May 29,2023 ? Headway to poverty alert!
With all said ,I have realized the following recommendations will salvage our nation, Nigeria from borrowing appetite while good governance comes to limelight:
- Use of recovered loots, or forfeited funds or properties genuinely to service debt and use of the internally generated revenues(IGR) for the country’s and State’s sustenance
*Focus on natural resources, aside concentration on country’s oil wells
*Proper resources allocation and management
*Mandating judicious use of loans into education, agriculture, healthcare and infrastructure
*Discouragement of corruption sacrificially
*Call for fundamental and structural change movement
- Drastic cut in government running, appointment, reduction in recurrent expenditure and removal of subsidies in electricity and petroleum products
- Rejection of loan request (particularly the Legislature)
- Encouragement of indigenization and farewell to importation and,
- Judicious spendings by citizens.
I strongly believe Nigeria will soon return to its primitive socio-economic glory in the World.
