We will investigate Nigeria’s rising debt profile – House of Representatives

We will investigate Nigeria’s rising debt profile – House of Representatives

The House of Representatives has commanded its advisory groups on Aids, Loans & Debt Management, Capital Market & Institutions and Banking and Currency to do examination concerning Nigeria’s disturbing indebtedness figure.

This was follow up by acceptance of a movement by Hon. Yusuf Tajudeen (Kogi, PDP), who noted with worry that the disturbing increase in the country indebtness figures had prompted developing monetary imbalance, short development & hindered improvement, and also affecting adversely on different areas of the economy.

As indicated by Hon. Tajudeen, “The aim of the motion is to bring to fore the very alarming Nigeria debt profile,” noting that there is need to always tag borrowing to specific projects.

“N13trn in three years is humongous. If we have borrowed 13trn in three years, we must be sure we are delivering on the doable,” Tajudeen stated.

The official noticed that they had proceeded with discussions about the genuine condition of the country’s indebtness figure, to such an extent that there is glaring dissimilarity in the amount given by the government & some financial observing associations.

He stated: “While the Vice President, Prof. Yemi Osibanjo, who is the Chairman of Nigerian Economic Council stated that the nation’s debt profile stood at $10billion in the last three years, the figures given by economic and budget experts as well as economic policy monitoring bodies range between $13billion and $47billion, from May 2015 to June 2018.”

“Further analysis of Nigeria’s external and domestic debt reveals that the external debt grew to $17.83billion in June 2018 from $10.49billion in 2015, while domestic debt which was N8.39trilli0n in June 2015 has risen to N12.15 trillion as at June 2018; (representing an increase of N7.6 trillion in 3 years).”

The Kogi State official additionally raised worry that aside the rising national indebtness figure, there had been sudden increment in sub-national acquiring over the past 3 years, to such an extent that the residential obligations of states governments increase from N1.69trillion in June 2015 to N3.4trillion in June 2018.

Concurring that while external & domestic financing is an important system to reflate the economy & invigorate national development & advancement, he bemoaned that the definite effect of Nigeria’s borrowings since June 2015 was yet to be detected.

“Unlike global practices where borrowings are tied to specific projects mutually agreed by respective organs of government, 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,” he stated.

It was with this contention that the House ordered the boards to investigate the issue & get back within a month for further authoritative activity.

Nevertheless, in considering a short time report of the House Committee on Aids, Loans & Debt Management on the demand for creation of a promissory note & security issuance to resolve acquired regional debt & booty commitments, the House endorsed N90, 236, 461, 031, 69 as installment of payments to 2 state governments for fees for tasks executed on federal parkways on the interest of the government.

From the sum, Taraba State gets N22, 254, 062, 330, 08 while Delta State gets N67, 982, 398, 701, 28 & the recipient temporary workers are; Setraco (N37, 432, 400, 000), Bouygues Nigeria Limited (N4, 636, 815, 486, 20), Simidia S and I International Limited (N346, 191, 766, 49), Hamdala Homes & Agency Limited (N210, 600, 000) & Lejmej Limited (960, 000, 000).