Governors elected under Peoples Democratic Party (PDP) have raised concerns over Nigerian debt profile and continuous borrowings, saying with current realities, it has become obvious that the nation cannot sustain the debt burden and further borrowing would affect coming generations.
They added that it was important the President Muhammadu Buhari-led’s administration look inward and devise other means to resuscitate the economy and halt borrowing money to fund projects across the country.
They argued that though borrowing money was acceptable standards across the globe, but borrowing money to fund projects rather than productive purposes betrays the acceptable essence of borrowings.
The position, among others, was part of the resolution reached at the end of the meeting of the PDP Governors’ Forum held in Uyo, the Akwa Ibom State capital, on Monday.
The governors decried that the debt profile of Nigeria with over 80 per cent of normal appropriation spent on debt servicing was rising and becoming uncontrollable.
They stated that all the gains of the PDP government under former President Olusegun Obasanjo when the nation exited its foreign debt obligations had been destroyed and also accused the present administration of borrowing for frivolous items, stressing that such an action was scandalous.
According to the governors, money should only be borrowed for productive purposes as Nigeria’s current debt of over N36 trillion is becoming clearly unsustainable relative to our earnings and GDP.
“We should not saddle incoming generations with an undue debt burden. The borrowing spree of the APC administration if unchecked will certainly lead Nigeria into avoidable bankruptcy,” a communique issued at the end of the meeting read in part.
Meanwhile, the governors also faulted the operational methods of the Central Bank of Nigeria (CBN) and claimed that the country’s lender was functioning as an independent government-within-a-government.
They added that the monopolistic nature of the country’s apex bank was unbecoming and that it was important for relevant stakeholders to rise up and correct the anomaly.
They alleged that the lender’s recent dabbling into politics was surprising and that its neutrality should be subjected to scrutiny, adding that such partisanship if left unchecked could spell doom for the country.
The governors described as saddening the central bank threats to sanction state governments that questions its operational method and that such brazen confrontation needs to be checked to relevant regulators.
“A situation where CBN creates money, decides how much of it to spend, on what to spend it on without any form of controls or supervision is patently subversive of our constitutional order.
“It has become not just a leviathan, but also a Father Christmas of sorts, dabbling into every sphere and scope of governmental activity, not just as a lender of last resort, but as a full executing agency of government.
“The meeting observed that the CBN has become such an octopus that it threatens state governments publicly, without decorum, about sanctions on any attempt to question its Modus Operandi. The CBN should take immediate steps to halt the depreciation of the naira,” the communique read.