Mr Femi Gbajabiamila and Dr Ahmad Lawan
FeaturedHighlightTrending Story

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

407

 

“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.”

Leave a comment

Related Articles

After 7 Years on the Run, NDLEA Nabs Drug Kingpin Chigozie with 11.6kg of Cocaine, Meth

The National Drug Law Enforcement Agency’s (NDLEA) elite special operations unit has...

Usyk Destroys Dubois with Fifth-Round KO, Restores Undisputed Heavyweight Crown

Oleksandr Usyk has once again reaffirmed his status as a boxing genius,...

Despite Akpabio’s Appeal, Sen. Akpoti-Uduaghan Vows to Return to Senate July 22

A confrontation is imminent in the Senate as suspended Sen.Natasha Akpoti-Uduaghan has...

Tunisian Athletes’ Road Crash: Gov. Abiodun Provides Lifesaving Assistance

A potential catastrophe was averted on Saturday when a vehicle transporting Tunisian...

USA Announces New Immigration Fees for Asylum, Work Permits,TPS

The United States Citizenship and Immigration Services (USCIS) has introduced new non-waivable...

PDP Suffers Another Blow: Another Osun Senator Fadeyi Quits Over Internal Crises

Senator Olubiyi Fadeyi, representing Osun Central in the National Assembly, has officially...

Mystery as Prime Suspect in Two Ondo Varsity Students’ Murder Case Dies

Investigation into the brutal murder of two Adekunle Ajasin University (AAUA) undergraduates,...

Lagos Luxury Real Estate Boom: Eko Atlantic Plot Prices Hit Over N2bln

Lagos’s Luxury Real Estate Boom Lagos State’s luxury real estate market has...

FAAC Disburses N1.818trn to FG, States, LGAs in June Amid 9.6% Revenue Increase

The Federation Account Allocation Committee (FAAC) has distributed a total of N1.818...

WAFCON 2024: Super Falcons Annihilate Zambia 5-0 in WAFCON Quarterfinals

The Super Falcons of Nigeria delivered a ruthless performance, annihilating the Copper...

I did BBL for myself, not for fashion or men – Temitope Solaja

Nollywood actress, Temitope Solaja, has opened up about her decision to undergo...

Why love fails behind closed doors – IK Ogbonna

Nollywood actor IK Ogbonna, who has largely stayed off the radar when...

PSN Newsrun: Nigerian Military rejects N13.7Million bribe

  The Presidential Compressed Natural Gas Initiative (PCNGI) debunks Premium Times report...

Tinubu Appoints IBB’s Son as Chairman of Bank of Agriculture

President Bola Tinubu has announced a series of appointments, including Mr. Muhammad...

₦1m Up for Grabs: NSC Rewards Team Nigeria for Gold Medalists at CAA

The National Sports Commission (NSC) has announced cash rewards for Team Nigeria...

Buhari’s Appointees Bypassed Me to Send Memos, ex-CoS Gambari Reveals

Prof. Ibrahim Gambari, the former Chief of Staff to President Muhammadu Buhari,...

Reject Nnamdi Kanu’s no-case submission, FG urges court

The Federal Government on Friday urged the Federal High Court in Abuja...

Just in: Senator rejects call for new constitution, backs targeted amendments

As national discussions continue regarding the future of Nigeria’s 1999 Constitution, Sen....

Strike: Contributory Pension Scheme’s Full Implementation Begins July 2025 – Gov. Abiodun

As the workers strike enters the third day, Ogun Gov. Dapo Abiodun...

Controversy Trails Renaming of University of Maiduguri After Buhari

A significant controversy is brewing following the federal government’s decision to rename...