In News by Oluwaseun Samuel on the 16th, June, 2020

We Are Robbing Our Youngsters To Pay For Our Greed

We Are Robbing Our Children To Pay For Our Greed


Atiku Abubakar

Atiku Abubakar, a former Presidential candidate of the Folks’s Democratic Social gathering (PDP) has lashed out on the federal authorities over the rising debt within the nation.

The previous Vice President in his article on Tuesday June 16, suggested FG to cut back its expenditure to cushion the impact of the nation’s excessive debt.

The medium time period expenditure framework and monetary technique from the federal ministry of finance, price range, and nationwide planning which reveals that Nigeria’s debt to income ratio was 99% within the first quarter of 2020, was quoted by Atiku who insisted that debt servicing doesn’t equate to debt reimbursement.

He additionally said that the Buhari-led administration has squandered the alternatives of future generations by bequeathing them a debt that they neither incurred nor loved.

Atiku referred to as for the sale of planes within the Presidential fleet because the nation can’t be on the verge of financial destroy and nonetheless be sustaining a Presidential Air Fleet that has extra planes than the Presidential fleets of these Nigeria take loans from.

Nigeria In Monetary Disaster: Robbing Our Youngsters to Pay for Our Greed.

Nothing has shocked me in my whole life in public service because the revelation from Nigeria’s First Quarter 2020 monetary stories within the Medium Time period Expenditure Framework and Fiscal Technique from the Federal Ministry of Finance, Funds, and Nationwide Planning, which reveals, alarmingly, that whereas Nigeria spent a complete sum of ?943.12 billion in debt servicing, the Federal Authorities’s retained income for a similar interval was solely 950.56 billion. Which means Nigeria’s debt to income ratio is now 99%.

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Nobody must be deceived. It is a disaster! Debt servicing doesn’t equate to debt reimbursement. The fact is that Nigeria is paying solely the minimal cost to cowl our curiosity prices. The principal stays untouched and is presumably rising.

We’re at a precipice. If our income figures don’t go up, and go up shortly, Nigeria dangers a state of affairs the place our income cannot maintain our debt servicing obligations. Which means that we could develop into bancrupt, and our collectors could foreclose on us.

In my view editorial of December 17 2019, titled ‘Limitless Borrowing Will Lead Nigeria to Limitless Sorrowing’, I had trigger to counsel the Federal Authorities to desist from indiscriminate lending, and supplied options on methods to each enhance income and scale back expenditure.

Nevertheless, my counsel fell on deaf ears. And now we’ve come to this. Once more, on Could 15, 2020, I counselled that the FG ought to cut back Nigeria’s price range by at the very least 25%, to mirror the financial realities of the occasions that we dwell in. Once more, my entreaties had been brushed apart.

As a part of an administration that paid off Nigeria’s whole international debt, I’m involved by the alarming and avoidable unprecedented enhance in our debt to GDP ratio and debt to income ratio. The alarm I sounded final yr is now sounding louder.

Not solely have we squandered our alternatives, we’ve additionally squandered the alternatives of our future generations by bequeathing them a debt that they neither incurred nor loved.

As a matter of utmost urgency and significance, I name on the Federal Authorities to take rapid steps to drastically scale back its expenditure, particularly on wasteful initiatives, equivalent to upkeep of the Presidential Air Fleet, and pointless renovations of buildings that would function is, limousine fleet for high authorities officers, abroad travels and coverings, and the four.6billion Presidential villa upkeep price range, and so forth.

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We can’t be on the verge of financial destroy, whereas nonetheless sustaining a Presidential Air Fleet that has extra planes than the Presidential fleets of these from whom we take these loans.

Nigeria should promote these planes and channel the income to different important areas of want whereas taking further steps to cut back the price of working our authorities.

The Federal Authorities can not proceed to justify these unsustainable numbers by pointing at Nigeria’s debt to GDP ratio.

That’s solely half the image. Our debt to income ratio paints a way more lifelike portrait of our monetary state of affairs, particularly as our revenues are majorly tied to a mono-product, oil and fuel, that are very susceptible to world shocks.

Once more, I warn that Nigeria is going through a disaster, and we can not proceed to maintain up appearances by taking out extra loans to prop up our financial system. That can quantity not simply to robbing Peter to pay Paul, however to robbing our youngsters to pay for our greed!

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