The lawmaker representing Kogi
West, Dino Melaye, Wednesday alerted the nation during Senate plenary that the
country’s aggregate debt status was over $40 billion.
He also explained that while
foreign debt of the nation records over $23 billion, domestic debt was over $20
billion debt, making a total of over $40 billion debt.
Melaye made these disclosures in
his contribution to the legislative overview and debate on the 2019 budget
appropriation slated for two days in the parliament.
The fiery lawmaker hinted that there
are strong indices for the devaluation of the Naira to dollar someday.
Further, he alleged that the
drafters and proponent of the 2019 budget were economical with the economic
reality of the country.
Buttressing his points for a
gloomy day ahead, Melaye revealed that the Internally Generated Revenue, IGR,
of the nation has dropped, saying that even the customs’revenue generation has
drastically dropped.
On this premise, he wondered on
the practical feasibility of how the 2019 budget could be funded as he claimed
that the nation no longer have any foreign reserves.
Also, Melaye disclosed that the
federal government was currently working to send a letter seeking approval of
$12 billion from the National Assembly to enable it fund the
Portharcourt/Maiduguri rail project.
In his words, Mr. President, the
economy of this nation is in tatters. There is no more foreign reserve.
“Crude oil price has dropped from
$60 to $50 dollars. Besides, the Internally Generated Revenue of the Federal
Government has reduced following the drop in the revenue generation of the
Nigeria Customs.
” There is no money to again to
fund the oil existing oil subsidy. Unemployment is on the rise.
“As we speak Nigeria has $23 billion
foreign debt and over $20 billion domestic debt. By May, naira will be N500 per
dollar.
” Even the Federal government is
now planning to send a letter to the National Assembly seeking approval of
another $12 billion to fund the Portharcourt/Maiduguri rail project. Besides,
on the declaration of President Muhammadu Buhari as winner of the 2019
presidential election, the stock market has lost over $300 billion”.
However, Bala Ibn N’Alla, deputy
Senate leader said Nigeria is under borrowing and, that there should be
increased funding for Agriculture.
But majority of the lawmakers, in
their contributions, acceded to the fact that further borrowing plan may
endanger the economy of the nation.
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If money is borrow to build railway, it is still meaningful and OK.
ReplyDeleteBecause it is money invested which can generate income to boost IRG for he country.
It is still better than borrowing to pay salary and embezzlement.
That will put FG in better situation for financial management and NO over budget for NANS.