Nigerian Senate knocks executive over rising debt profile

Senators, on Thursday, expressed concerns, over what they described as the increasing debt profile of the country.

Solomon Adeola, urged the Senate committee on Local and Foreign Debts to examine critically to determine the country’s real debt profile. Senator Rabiu Kwankawso, said the country must be careful not to fall into unnecessary debt trap again.

Senator Sunny Ogbuoji, on his part, noted that the rising debt profile of the country had been steadily on the rise.‎ He called on government officials responsible for the management of the country’s profile to exercise caution.

The positions of the senators, is coming as the Red Chamber, put on hold the consideration of the report of its Joint Committee on Finance, Appropriation and National Planning and Economic Affairs on the 2018- 2020 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

Leader of the Senate, Ahmad Lawan, told lawmakers that the decision of the Organisation of Petroleum Exporting Countries (OPEC) on production quota Thursday, would guide the Senate in taking an informed position on some parameters of the MTEF.

Read Also : Buhari returns from Abidjan, prepares to attend another meeting in Jordan

Deputy President of the Senate, Ike Ekweremadu who presided briefly before the Senate President, Bukola Saraki took charge, agreed and hailed Lawan for the information.

The Senate resolved that the MTEF would be considered and passed on Tuesday, December 5, 2017. The lawmakers who raised issues with the country’s rising debt portfolio spoke when the upper chamber resumed consideration of the general principles of the 2018 budget.

Adeola said: “I call on the committee on Local and Foreign Debts to critically look at the countries debt profile. The committee should determine and tell Nigerians the true profile of the country’s debts. How much of the debt service are we actually fulfilling. It is important that we know to guide us in our actions.”

He noted that it would have been better if the National Assembly was furnished with the budget performance of 2017 to enable members make meaningful comparism. Adeola said it is believed that the issue of virement for 2017 had died a natural death and would not come up again in view of the presentation of the 2018 budget.

On his part, Kwakwanso, said the Executive arm of government should be supported to maintain the prevailing stability in the Niger Delta region to ensure that the oil production quota is met.

The Kano Central lawmaker said he was not in support of borrowing locally or from the international market except if it is absolutely necessary. His fear, however is that if care is not taken, the country may fall back into the debt trap especially if borrowed funds are mismanaged.

Ogbuoji wondered why the 2018 budget was christened “a budget of consolidation.” He queried: “I don’t know what we are consolidating. Is it the 2017 budget that is barely implemented that we are consolidating. Are we consolidating incomplete payment of salary or salary that is not paid at all.”

The Ebonyi south lawmaker said if 60 per cent of capital budget is rolled over to 2018 as being suggested, the budget would be further over bloated, making it difficult for the country to find money to fund the budget.

He said that it is worrisome that local debt profile is increasing rapidly. Ogbuoji said: “Consideration of the budget is beyond party lines. Anybody who thinks he is defending this budget is anti-Nigeria.”

Saraki explained that the budget was rightly christened budget of consolidation because the country had just recovered from recession. “Now is the time to build the economy.,” he said.

By Ehisuan Odia…

 

 

RipplesNigeria… without borders, without fears

Click here to join the Ripples Nigeria WhatsApp group for latest updates.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now