We will fight to stop Buhari from borrowing more money – Group Wishes
The Socio-Economic Rights and Responsibility Project (SERAP) has called on President Muhammadu Buhari to abandon his plan to take out another loan to finance the 2022 budget.
SERAP has said it will ensure that the Nigerian government abandons indiscriminate borrowing, end corruption and reduce the cost of governance.
The group revealed it on their official Twitter page Thursday morning.
The Nigerian government on Wednesday revealed its intention to finance the proposed budget deficit for 2022, set at 6.258 billion naira through new borrowing.
Minister of Finance, Budget and National Planning, Zainab Ahmed, revealed at a press conference after the Federal Executive Council (FEC) meeting in Abuja, adding that the loan will help finance projects of infrastructure at the federal level.
“The government borrowed before this administration and continues to borrow and it is important that we borrow to provide development projects in the form of roads, railways, bridges, power and water for sustainable development in this country, ”she said.
“If we depend only on the revenues we get, even though our revenues have increased, the operational expenses of the government, including salaries and other overheads, are barely covered or swallowed up by the revenues. “
While defending government borrowing, she said the decision is necessary to be able to build projects and ensure they are developed on a sustainable basis.
Despite public criticism of the Buhari government’s frequent borrowing, the finance minister insisted that the total loan size is still within healthy and sustainable limits.
Ahmed added: “Nigeria’s borrowing has been of great concern and has sparked much discussion. But if you look at the total amount of the loan, it is still within healthy and sustainable limits.
“In July 2021, total borrowing stood at 23% of GDP. When you compare our borrowing to other countries, we are the lowest in the region, the lowest compared to Egypt, South Africa, Brazil, Mexico, the lowest and Angola.
“We have an income problem. Our income has increased. We have just reported to the Council that our non-oil revenues in July recorded a rate of 111%, which means a pro-rata budget overrun.
It comes as the Federal Executive Council (FEC) approved the 2022 Appropriation Bill for an aggregate expenditure of 16.39 trillion naira.
Reacting to the Nigerian government’s intention to take out another loan, SERAP asked Buhari to immediately drop the idea.
“BREAKDOWN: Debt of 35 trn N: We urge President Buhari to immediately abandon the announced borrowing plan to finance the proposed budget deficit of 6.258 trn 2022.
“We will fight to push the administration to end this indiscriminate borrowing, end corruption and reduce the cost of governance,” SERAP tweeted.