Victor EzejaBy Victor Ezeja
KEBBI State Governor, Abubakar Atiku Bagudu has urged the Federal Government to borrow more funds to finance projects, even as concerned Nigerians have lamented over increasing public debt profile of the country.
Bagudu who stated this at the 27th Nigerian Economic Summit (NES) in Abuja on Tuesday, said different states in the country needed more funds to invest in critical infrastructural projects.
“I want to see the minister of finance, budget and national planning at the world stage telling investors that Nigeria needs $1 trillion to support development.
“People say we have over-borrowed, but we need more money, and we need the support urgently to invest in our capacities.
“I want to see how the ministry of finance can go out there and convince people on how to mobilise much more resources. For me, at the sub-national level, the limiting factor is resources.
He said states find it difficult to on their own borrow directly from foreign financial institutions like World Bank, adding that it is only the Federal Government that has power to secure such loan from such organization.
Nigeria’s debt profile has been on steady increase since 2015. Nigeria’s debt has more than tripled in the present administration which started in 2015.
Data shows that Gooluck Jonathan’s government left the sum of $7.3 billion in May 2015. However, according to Debt Management Office (DMO) the country’s total public debt stock was N35.465 trillion as at June 30 (around $88 billion). This no doubt gives serious pressure on revenue performance of the country’s economy as government spend huge sum of money in debt servicing.
The 2022 budget of N16.39 trillion which was presented to National for consideration has a deficit of about N6 trillion as revenue projection which is pegged around N10.13 trillion. The deficit would have to be borrowed to finance the budget.
Some economic experts have averred that although borrowing is a way to finance government projects, they however, maintaied that such borrowing should be targeted at critical capital projects that is self liquidating, or can generate revenue which can be used in offsetting the loan.
Former Governor of Anambra State, Mr Peter Obi had recently while commenting the government borrowing to finance the budget, stated that the Federal Government is merely borrowing for consumption expenditure.
He pointed out that such is not what Nigeria needs, adding that such borrowed money should be invested in critical infrastructure that could help in spurring economic growth in order to lift poor Nigerians out of poverty.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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