Politics

Nigeria Can’t Continue In Path Of Rising Debts – Experts Tackle Tinubu

Published

1 year ago

January 17, 2023

Editor

Economic experts have said Nigeria cannot continue on the path of indebtedness amid incompetence and inefficiency.

The economic analysts were reacting to the All Progressives Congress, APC, presidential candidate, Bola Ahmed Tinubu’s recent comment on Nigeria’s 2023 appropriation bill.

Recall that Tinubu remarked in his interaction with business stakeholders, in Lagos, that budget deficits are not necessarily bad.

However, Nigeria’s rising debt profile has been a source of apprehension for many economists and ordinary Nigerians.

Certainly, for a country struggling on all fronts, a N77 trillion debt if the National Assembly approves President Muhammadu Buhari’s 23.7 trillion Ways and Means advance, according to the Debt Management Office, DMO recent statement, should raise dust.

With the country’s dwindling revenue portfolio and overbearing debt repayment burden, the fear continues to escalate.

In perspective, a breakdown of this year’s appropriation bill with N21.51 trillion expenditures and expected revenue of N9.73 trillion, shows that a whooping N6.31 trillion representing over 70 per cent of its aggregated revenue would be gulped by debt servicing and shooting up the country’s budget deficit to N10.78 trillion.

In plain economics, Nigeria’s debt situation does not look good.

Reacting to the development in a chat with DAILY POST, a financial inclusion/wealth management expert, Mr Idakolo Gbolade said budget deficit financing cannot translate to economic growth in Nigeria.

He stated that the budget deficit is causing Nigeria double digit inflation and depreciation of naira.

He added that historically, the budget deficit has not been productive because some of the projects financed by it are not economically viable. He cited Nigeria railway currently crippled by insecurity as an example.

“Budget deficit financing cannot translate to economic growth in Nigeria because deficit financing has led to double digit inflation with the country also battling chronic food inflation.

“The deficit financing has consistently weakened the Naira and has led rating agencies to downgrade Nigeria’s credit rating, thereby affecting flow of investment opportunities and ability of the private sector to source funding from foreign institutions.

“The deficits spending by Nigeria cannot be said to be totally productive because some of the infrastructural projects financed by the government are not commercially viable projects that can repay the loans used to fund them.

“A major example is the railways which have been rendered unproductive by insecurity that has affected their operations.

“Continuous deficit spending by the government would leave the government unable to undertake key social and infrastructural projects in the long run”.

Also, an Accounting and Financial Development don at Lead City University, Ibadan, Prof Godwin Oyedokun said Nigeria is having budget deficits owing to inefficiency and incompetence.

He said it was not good for a country to use a larger part of her income (revenue) on debt serving, as it is the case of Nigeria.

Also, he disclosed that the country’s budget deficit on recurrent expenditure would only plunge her unborn generation into debt trap.

He said the budget deficit becomes laudable if it is meant to finance capital expenditures.

“Yes, the budget deficit is not bad at all. My stand has always remained that the country shouldn’t use a larger part of her income to pay debt, that is where the problem comes. Another problem is how sincere are the government deficits in terms of budget? We are having a deficit where recurrent expenditure is not lower than the capital expenditures. It means we are going into debt to make a certain class of Nigerians to be wealthy. It won’t be an issue if most people in the economy are productive. You pay a salary for a job for twenty people instead of two people.

“We are deficiting on inefficiency and incompetence. Such will not develop the economy. If the budget deficit is on capital expenditures, this will bring about future cash flow into the economy. If the Central Bank of Nigeria’s 23 trillion ways and means is added, Nigeria’s debt profile would hit N77 trillion, this means that generations yet unborn will be using their income to pay the debt of their fathers who decided not to take governance seriously,” he lamented.

Politics

Atiku Hints On Supporting Obi For 2027 Presidential Race

Published

2 days ago

May 18, 2024

Editor

The 2023 presidential candidate of the Peoples Democratic Party, Atiku Abubakar, has said that if in 2027, the party decides that it is the South-East’s turn and selects Peter Obi as its candidate, he will readily offer his support.

“I have said repeatedly and I even said it before the 2023 general elections that if the PDP decides to zone the presidential ticket to the South or South-East specifically, I won’t contest it. As long as it’s the decision of the party, I will abide by it. But I contested the 2023 presidential ticket because it was thrown open to all members of the party.

“If the party decides that it’s the turn of the South-East and Peter Obi is chosen, I won’t hesitate to support him,” Atiku declared in a recent interview with BBC Hausa Service.

He added that a merger between the PDP and Labour Party is possible.

Atiku added that members of the party would decide his fate in the 2027 general elections.

The former Vice President mentioned that his recent meeting with Obi might indicate a possible alliance leading up to the 2027 general elections.

Responding to questions about the meeting with Obi, Atiku said, “It’s just a normal friendly meeting that we often have, particularly among us in the opposition parties. Such meetings are healthy for Nigeria’s democracy and in the country’s interest.”

On whether this will bring about a merger, he said, “Yes, it’s very much possible. We can merge to achieve a common goal. So, it’s possible, and nothing can stop it if we wish to achieve that.”

The former Vice President, who denied that the choice of presidential candidate might frustrate the merger discussion, said, “That’s not true. That challenge will not arise. I can tell you that the choice of who will fly the flag of the party won’t be an issue.”

On why he’s still in active politics, Atiku said, “Yes, we can’t keep quiet and watch things go wrong. People are suffering and we are committed to making Nigeria a better place.

“It means you are not tired of politics of Nigeria? Not at all. I am still in active politics in Nigeria, at least, as long as God permits.

“My age doesn’t stop the young ones from testing their fate. Everybody, irrespective of age, is allowed to aspire to be anybody in the society, politically or otherwise.”

Regarding his 2027 Presidential ambition, the former Vice President said “That would depend on the decision of my party. I can’t make any categorical statement on that. It’s the duty of the party to decide on the way to go in the next election.

“Until that time comes. Let’s just wait and see how it will turn out.

“It must not be interpreted like that. I must not be eyeing elections to have meetings with political friends and associates. Currently, we are practising democracy in this country which we fought for with our blood.”

Last week, Obi held a private meeting with Atiku and some other PDP leaders in Abuja.

Obi also met separately with former Jigawa State Governor Sule Lamido and former Senate President Bukola Saraki, sparking speculation about a possible coalition for the 2027 general elections.

Obi was a PDP member until 2022, when he left to pursue his presidential ambitions with the Labour Party.

He finished third behind Atiku in the February 23 presidential election, which was won by Bola Tinubu of the All Progressives Congress.

Atiku blamed Obi’s departure from the PDP for his loss to Tinubu.

Analysts argued that Atiku’s 6,984,520 votes combined with Obi’s 6,101,533 votes could have secured a win against Tinubu, who received 8,794,726 votes.

Monday’s meeting marked the first public interaction between Obi and Atiku since the election.

Social media and online platforms were flooded with viral photos of Obi’s meetings with the three PDP figures on Monday.

In 2019, Atiku and Obi ran together on the PDP ticket but were defeated by former President Muhammadu Buhari of the APC.

However, due to internal conflicts, Obi, who was Atiku’s running mate in 2019, left the PDP and ran as the Labour Party’s candidate in the 2023 presidential election.

Politics

JUST IN: Ex-PDP Deputy National Chair, Oyedokun Defects To APC

Published

3 days ago

May 16, 2024

Editor

A former Deputy National Chairman of the Peoples Democratic Party, Alhaji Shuaib Oyedokun, has resigned his membership of the party and announced defection to the All Progressives Congress.

Oyedokun, a notable personality within the political circle in Osun State and beyond, said he decided to dump the PDP after consultation with his loyalists.

He said he would be joining APC, where his experience, efforts, and leadership roles would be valued and appreciated.

His resignation letter addressed to the National Chairman of the PDP through the ward, local government and state chairmen of the party obtained late Thursday further read, “As a functional member and leader of PDP (Ward 13, Jagun/ Osi-Bale Ode, Odo-Otin South Local Government, Osun State,) whose high electoral productivity and value have been credibly and positively acknowledged in my ward, across the local council, state and country-wide for the enhancement of the fortune of the PDP, I have the honour (though with pain) in announcing the renunciation of my membership of the party on principle, having observed that the ideals of we, founding members, had been sorely contaminated.

“In taking this step which is not even without due consultation with my teaming loyalists in the PDP, I have consequently decided to shift my allegiance to the All Progressives Congress (APC) where I believe my experience, efforts and leadership roles would be valued and appreciated.”

Oyedokun’s defection to the APC is coming at the time the aspirant he supported during the 2022 Osun governorship primary of PDP, Mr Dotun Babayemi is also moving to the national ruling party.

Osun APC said on Wednesday that Babayemi and his supporters would be dumping PDP and joining the party at a rally scheduled to be held in Osogbo on Friday.
PUNCH

Politics

Poll: APC Has No Sellable Candidate, Nothing To Campaign On – Edo Govt

Published

6 days ago

May 13, 2024

Editor

The Edo State Government claimed on Monday that the All Progressives Congress, APC, has no credible candidate for the September 21 governorship election.

This was an assertion made by the Edo State Commissioner for Communication and Orientation, Chris Nehikhare, at a press conference in Benin City.

Nehikhare also alleged that the party is using lies and propaganda as its campaign strategy.

According to him: “The only APC strategy for the governorship election is to resort to lies and propaganda. When a party takes lies and propaganda as an election strategy, it means it has nothing to offer the people. The party lacks people with character, capacity, and intellect.”

The commissioner who took journalists through a screened shot WhatsApp chat said: “What we have here is the official APC WhatsApp platform, their own people screenshot their discussion. One of them who has a conscience asks, is this the only thing we have?”

Nehikhare, who said APC is ashamed to campaign for its candidate, noted that, as of today, nobody had heard of what the party has for the state.

“All we heard is how they are going to help their paymaster, lies and propaganda that will not help the state,” he added.

He opined that lies and propaganda are not strategies the opposition party, like APC, can use to win the September 21 governorship election.

The commissioner, who warned against misinformation and fake news ahead of the governorship election, urged media practitioners to be neutral in matters concerning lies and propaganda.

He, however, noted that Governor Godwin Obaseki’s administration has a lot of achievements to market and sell its candidate for the election.