Hon.Tajudeen while moving the motion expressed concern about the alarming rate of Nigeria’s debt profile, asserting that this has led to economic instability, stifled growth and stunted development, as well as impacting negatively on various sectors of the economy.
According to him, the figures given by economic and budget experts, including economic policy monitoring bodies range between $13 billion and $47 billion, from May 2015 to June 2018.
The House member stated that there have been continued controversies about the true state of the nation’s debt profile, such that there is glaring disparity in the figures given by the federal government and some fiscal policy monitoring organizations.
“While the Vice President, Yemi Osibanjo, who is the chairman of the economic council stated that the nation’s debt profile stood at $10 billion in the last three years.
“Further analysis of Nigeria’s external and domestic debts which reveals that the external debt grew to $17.83 billion in June 2018 from $10.49 billion in 2015, while domestic debt which was N8.39 trilli0n in June 2015 has risen to N12.15 trillion as at June 2018; (representing an increase of N7.6 trillion in three years).
“Aside the rising national debt profile, there is a sharp increase in sub – national borrowing in the last three years, such that the domestic. debts of state governments rose from N1.69 trillion in June 2015 to N3.4 trillion in June 2018,” he said.
The House member added that even though borrowing (external and / or domestic) is an important and necessary strategy to reflate the economy and stimulate national growth and development, the positive impact of Nigeria’s borrowings since June 2015 is yet to be seen unlike global practices where borrowings are tied to specific projects mutually agreed by respective organs of government.
He alleged that various borrowings by the federal government since June 2015 have not been transparent, “a situation which gives room for doubts, misconception and prone to manipulations.
“Nigeria’s revenues are sharply declining, which makes it increasingly difficult to attract and sustain higher debts, ultimately portending micro and macro dangers to the national economy amidst numerous developmental challenges;
The committees are expected to report their findings back to the House within four weeks for further legislative action.
