Worried by nation’s growing debt crisis, SERAP tells NASS: Stop that fresh loan request now

“SERAP also expressed worry on the perceived unwillingness or inability of the National Assembly to vigorously exercise its constitutional duties to check the apparently indiscriminate borrowing by the government”

“The National Assembly should not allow the government to accumulate unsustainable levels of debt, and use the country’s scarce resources for staggering and crippling debt service payments rather than for improved access of poor and vulnerable Nigerians to basic public services and human rights”

Uncomfortable and peevish with the borrowing spree of the President Muhammadu Buhari administration, the Socio-Economic Rights and Accountability Project (SERAP) has asked the leadership of the National Assembly to decline approval for the president’s fresh $4 billion and €710 million loan request.

Specifically, SERAP appealed to the Presiding Officers of the Assembly — the Senate President, Dr Ahmad Lawan, and Speaker of House of Representatives, Mr Femi Gbajabiamila to turn down the request.

Reason: Nigeria’s debt crisis is getting out of control, with N11.679 trillion committed into debt servicing between 2015 and 2020, while only N8.31 trillion was expended on capital projects.

Alternatively, SERAP wants the NASS leaders to request for details of spending of all loans obtained since May 29, 2015 by the government, before acting on the new request.

Persecondnews had reported that Buhari had via a letter dated 24 August, 2021 sought the approval of the National Assembly to borrow $4,054,476,863 billion and €710 million, on the grounds of “emerging needs.”

The organization, in an open letter dated 18 September 2021, and signed by its Deputy Director, Mr Kolawole Oluwadare, expressed “concerns about the growing debt crisis.”

The letter was copied to the Chairmen of the Public Accounts Committees of both houses — House of Representatives and the Senate.

It expressed concern over the lack of transparency and accountability in the spending of loans that have been obtained.

It also expressed worry on the perceived unwillingness or inability of the National Assembly to vigorously exercise its constitutional duties to check the apparently indiscriminate borrowing by the government.

SERAP said: “The National Assembly should not allow the government to accumulate unsustainable levels of debt, and use the country’s scarce resources for staggering and crippling debt service payments rather than for improved access of poor and vulnerable Nigerians to basic public services and human rights.

“Accumulation of excessive debts and unsustainable debt-servicing are inconsistent with the government’s international obligations to use the country’s maximum available resources to achieve progressively the realisation of economic and social rights, and access of Nigerians to basic public services.

“The country’s public debt has mushroomed with no end in sight. The growing national debt is clearly not sustainable. There has been no serious attempt by the government to cut the cost of governance. The leadership of the National Assembly ought to stand up for Nigerians by asserting the body’s constitutional powers to ensure limits on national debt and deficits.

“SERAP urges you to urgently propose a resolution and push for constitutional amendment on debt limit, with the intent of reducing national debt and deficits.

“This recommendation is entirely consistent with the constitutional oversight functions and spending powers of the National Assembly, and the country’s international anti-corruption and human rights obligations.

“Indiscriminate borrowing has an effect on the full enjoyment of Nigerians’ economic and social rights. Spending large portion of the country’s yearly budget to service debts has limited the ability of the government to ensure access of poor and vulnerable Nigerians to minimal health care, education, clean water, and other human needs.”

On its next line of action, SERAP threatened: “Should the National Assembly and its leadership fail to rein in government borrowing, and to ensure transparency and accountability in the spending of public loans, SERAP would consider appropriate legal action to compel the National Assembly to discharge its constitutional duties.

“SERAP notes that if approved, the country’s debts will exceed N35 trillion. The government is also reportedly pushing the maturity of currently-secured loans to between 10 and 30 years. N11.679 trillion is reportedly committed into debt servicing, while only N8.31 trillion was expended on capital/development expenditure between 2015 and 2020.

“Ensuring transparency and accountability in the spending of loans by the government and cutting the cost of governance would address the onerous debt servicing, and improve the ability of the government to meet the country’s international obligations to use maximum available resources to ensure the enjoyment of basic economic and social rights, such as quality healthcare and education.”