The Peoples Redemption Party (PRP) has berated the All Progressives Congress (APC) led Federal Government over it plans to borrow $29.6 billion in spite of the current dept profile.
The party which made its position known during its maiden media dialogue held on 3rd December, 2019 to comment on the 2020 budget urged the National Assembly not to approve the request of the Executive that sought approval of the Senate to borrow additional $29.6 billion.
Making its position known on the government’s request for additional $29.6 billion, which will make the national debt stock to $103 billion from the current position of $64 billion, the Peoples Redemption Party (PRP) said, “we hereby call for reduction of the unacceptable rising debt profile of Nigeria under the present All Progressives Congress Government.”
“Whilst we agree as urged by the pro-borrowing speakers that there is the need to borrow to finance capital projects where there is budget deficit, we would like to say that these people are not addressing these concerns on ever increasing national debt,” the party said.
The National Publicity Secretary, Peoples Redemption Party (PRP), Abdul Gombe who pointed out in a press release that members of the public have not been shown how and where previous borrowing have been used said the rising debt stock may further impoverish the nation that currently spends about 50% of its revenue in servicing existing debts.
The Peoples Redemption Party maintained that further spending to service more debts would cripple the economy and send the polity into further social problems.
It challenged Kaduna state government to make known to the general public, details of these borrowings such as amount to be borrowed, tenure of borrowing, use to which the funds are to be put to and how the borrowings are to be repaid.
The PRP berated the Senate President and the Minister of Finance for not attempting to address the issues which according to him, are germane.
“We in the PRP would take the example of Kaduna State Government’s intended borrowing of $350million or N127billion borrowing and the Federal Government borrowing of $500million for staple Crops Processing Zone Development out of total borrowing of $29.6billion before the National Assembly,” the statement reads.
It further revealed that Kaduna State is the 9th most indebted states in Nigeria with total debts to N162 billion against Internally Generated Revenue of N44 billion per annum, as its surest revenue.
“From you Mr. Senate President as you are the one defending the additional borrowings of $29.6billion, the citizens of Kaduna State would like to know,
What has the previous N164 billion debt borrowed by Kaduna State Government been used for and what revenues or employment have these debts generated,” the party queries.
The party which said the purpose for the additional $350million or $127 billion borrowing as stated in available documents for the loan is “Development Policy Operation”, pointed out that the term was not clear for which reason it is meant for.
“You need to tell them what is the purpose of this borrowing; and how can Kaduna State Government with an IGR of N44 billion as its only surest annual income service a debt of N291 billion.” The release said further
