N6.08trn Budget: Borrowing N1.84trn Amounts To Nigeria Borrowing N5bn Per Day – Olisa Metuh

N6.08trn Budget: Borrowing N1.84trn Amounts To Nigeria Borrowing N5bn Per Day – Olisa Metuh
Patrick Aigbokhan
Chief Olisa Metuh, National Publicity Secretary, People’s Democratic Party PDP, has condemned the Federal Government’s proposed borrowing of N1.84 trillion as contained in the 2016 budget.
President Muhammadu Buhari, had in the 2016 budget indicated the government’s proposed borrowing of N1.84 trillion, but the PDP in its reaction to the development, said through Metuh, its National Publicity Secretary, that N1.84trn borrowing amounts to Nigeria borrowing N5bn per day for the next 365 days, starting from January I, 2016, without what he termed, a corresponding provision for economic production and a clear repayment plan.
It condemned President Buhari and the All Progressives Congress, APC-led governmenting for the move, saying that Nigeria as a country was going the way of Greece.
The PDP described the scenario as one that would spell doom for the future of the nation, adding that President Buhari must explain to Nigerians why the N6.08 trillion 2016 federal budget would not be considered a huge fraud, designed to mortgage the future of the country, just as it challenged the Federal Government to a public and open debate on the budget devoid of sentiments of the APC-controlled National Assembly and who are minded against any cuts in their own allocation.
Metuh said, “Some people may be wondering why we raised an alarm about the budget. The reason is simple. When we analysed the budget, we discovered it is a misshapen attempt at a Keynesian economics of applying deficit spending to stimulate growth even when studies have proven that GDP growth rates decrease by over 50 per cent when debt goes from low or moderate to high. But then we know the borrowing here is to pay huge campaign debt and fund a political war chest.
“By every standard, this budget is a booby trap against the nation. When you break down the proposed N1.84 trillion borrowing, you discover that it amounts to borrowing N5 billion everyday for the 365 days in 2016. The questions are: for what specific projects are they borrowing N5 billion per day and how do they intend to pay back?
“The President should explain to Nigerians how they intend to pay back the loan. Is it by continuous borrowing to service the interests, and does he intend to accumulate colossal debt for future generations of Nigerians?
“The truth is that this administration cannot justify this proposal. There is no known economy in the world where you can justify borrowing N1.84 trillion without specific projects and precise repayment outline. This is worse still in an oil-driven, mono-economy at a time crude oil is selling at $30 per barrel and is speculated to go down to about $20 or even lower in the next one year. The idea can only come when you diversify the economy and boost production capacity in manufacturing and other critical sectors, a direction, which the budget clearly failed to provide. “