Atiku Abubakar, former vice-president, has again tackled the
federal government on Nigeria’s rising debt profile, accusing it of
“squandering the opportunities of future generations”.
In an article on Tuesday, the former presidential candidate
said the federal government should “drastically” reduce its expenditure to
cushion the effect of the country’s high debt.
Atiku quoted figures from the medium term expenditure
framework and fiscal strategy from the federal ministry of finance, budget, and
national planning, which shows that Nigeria’s debt to revenue ratio was 99% in
the first quarter of 2020.
The report, he said, noted that while the federal government
spent ₦943.12 billion in debt servicing in the first quarter, it retained
revenue of only ₦950.56 billion during that period.
“No one should be deceived. This is a crisis! Debt servicing
does not equate to debt repayment. The reality is that Nigeria is paying only
the minimum payment to cover our interest charges. The principal remains
untouched and is possibly growing,” Atiku wrote.
“We are at a precipice. If our revenue figures do not go up,
and go up quickly, Nigeria risks a situation where our revenue cannot even
sustain our debt servicing obligations. Meaning that we may become insolvent,
and our creditors may foreclose on us, as has occurred in Sri Lanka and the
Maldives.”
Atiku, who has repeatedly criticised the federal government
over frequent borrowings, said as part of an administration “that paid off
Nigeria’s entire foreign debt,” he is concerned by the “alarming and avoidable
unprecedented increase in our debt to GDP ratio and debt to revenue ratio”.
“Not only have we squandered our opportunities, we have also
squandered the opportunities of our future generations by bequeathing them a
debt that they neither incurred nor enjoyed,” he said.
“As a matter of utmost urgency and importance, I call on the
Federal Government to take immediate steps to drastically reduce its
expenditure, especially on wasteful projects, such as maintenance of the
Presidential Air Fleet, and unnecessary renovations of buildings that could
serve as is, limousine fleet for top government officials, overseas travels and
treatments, and the ₦4.6billion Presidential villa maintenance budget, etc.
“We cannot be on the verge of economic ruin, while still
maintaining a Presidential Air Fleet that has more planes than the Presidential
fleets of those from whom we take these loans. Nigeria must sell those planes
and channel the revenue to other vital areas of need while taking additional
steps to reduce the cost of running our government.”
He said federal government cannot justify the debt profile
by pointing at Nigeria’s debt to GDP ratio as that is “only half the picture”.
“Our debt to revenue ratio paints a much more realistic
portrait of our financial situation, especially as our revenues are majorly
tied to a mono-product, oil and gas, which are very vulnerable to global
shocks,” he said.
“Again, I warn that Nigeria is facing a crisis, and we
cannot continue to keep up appearances by taking out more loans to prop up our
economy. That will amount not just to robbing Peter to pay Paul, but to robbing
our children to pay for our greed!”
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FOR ONCE, I SUPPORT ATIKU ABUBAKAR ON HIS ASSERTIONS. EVEN THE NATIONAL ASSEMBLY SHOULD BECOME UNILATERAL. WHAT IS THE ESSENCE OF SPENDING BILLIONS IN MAINTAINING 469 ASSEMBLY MEMBERS EXCLUDING THEIR STAFFS?
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