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Okonjo-Iweala, APC disagree over $63bn debt burden

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Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, has disagreed with key figures in the APC, namely the vice president-elect, Prof. Yemi Osinbajo, and the party’s national chairman, Chief John Odigie-Oyegun over who is responsible for the nation’s current debt burden, and the figure involved.

While the incoming ruling party blames the President Goodluck Jonathan administration for the debt situation, which it puts at $60 billion, the minister on Saturday put the total debt stock at $63.7 billion, which encompasses multilateral as well as domestic loans by successive federal and state governments since 1960.

She said that of this figure, $21.8 billion was incurred under President Jonathan.

Speaking during an interactive session with finance correspondents in Abuja, Okonjo-Iweala said it was wrong to blame the Jonathan administration for the huge debt stock which she said was accumulated over a long period of time by several administrations.

Her disclosure is coming on the heels of remarks by Prof. Osinbajo that the outgoing administration of President Jonathan will be leaving a huge debt of $60 billion for the incoming administration of Muhammadu Buhari.

Also, Chief Odigie-Oyegun, who was speaking at a two-day retreat for APC senators-elect in Abuja on Saturday also made reference to “the unprecedented $60-billion debt which the outgoing government has left for the incoming one”.

According to him, Nigerians should not expect miracles from the party, as there is no magic wand to transform the economy overnight, especially in view of the fact that the incoming Buhari administration will need about N4.1 trillion to start with.

He said the money will be needed to kick start the economy by offsetting outstanding workers’ salaries at the federal and state levels, service debts incurred by the outgoing administration and also to offset petrol subsidy payments already imported given that the Jonathan government may have already abandoned subsidy payments

Against the realities on ground, the party chairman said reviving the nation’s economy will be a long and tortuous process.

“Make no mistake about it, the days ahead will be tough, and this is not crying wolf. From the first day of this government, a total of N4.1 trillion will be required for sundry expenses, including oil subsidy payment, arrears of salaries at federal and state levels and debt servicing, just to mention a few, ” he said.

Oyegun, however gave an assurance that with an APC government, things would surely get better.

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