PDP and Ndume Reject Buhari’s New Loan Application | The Guardian Nigeria News
The People’s Democratic Party (PDP) said yesterday that with an alarming debt of 35 trillion naira and a service-to-income ratio of 97.7, President Muhammadu Buhari would have mortgaged Nigeria’s future.
The main opposition party added that the statement by President of the Presidential Economic Advisory Council, Dr Doyin Salami, that the country’s current level of debt was “unsustainable” justified its position.
In a statement by its national publicity secretary, Kola Ologbondiyan, the PDP said: “Dr. Salami’s revelation of the state of the nation is another indicator of the nation’s economic tragedy.
Dr. Salami’s revelation only validates apprehensions that President Buhari, who borrows ever more money, is completely disconnected from his economic team, while the corrupt cabal of his presidency has taken advantage of the situation to plunder the coffers.
The chairman of the economic panel pointed out that the federal government’s spending had increased, at a faster rate than its revenues, adding that the public debt was increasing due to growing budget deficits.
He noted that from January to May 2021, the real budget deficit was 3.01 trillion naira, representing 53.8% of the total budget deficit for 2021.
The economist stressed that macroeconomic stability, coherence of policies and regulations, sector reforms, development of human capital and resolution of the security crisis were essential for the economy to rebound. He also said that the investment climate in the country is currently facing major headwinds, with total foreign capital inflows remaining low.
Justifying Salami’s comments, the PDP, in its statement, said: “It is sad to see that despite the already terrifying situation and with the further depreciation of our naira to N 570 to the dollar, President Buhari s ‘is about to take a new N 2.66 trillion ($ 4 billion and € 710 million) in external loans, for very opaque purposes.
In the same vein, the chairman of the senatorial army commission, Ali Ndume, asked for the loan application to be examined. The head of the All Progressives Congress (APC) argued that a vigorous debate over whether a new loan would be appropriate would address concerns among Nigerians, who have since seen the Senate as an appendix to the executive.