Accept IMF’s Caution On Debt Vulnerabilities – CHRICED Tells FG
BY VICTOR BUORO, ABUJA – The Resource Centre for Human Rights & Civic Education (CHRICED) has said that with the caution by the International Monetary Fund (IMF) to the Federal Government on Nigeria’s increasing debt vulnerabilities, it is time to curb the appetite for uncontrolled borrowing by working to position the nation’s economy to be on the right footing.
CHRICED applauded what it described as the “subtle note of caution” recently handed down by the IMF to the Federal Government over Nigeria’s burgeoning debt profile.
In a statement signed by its Executive Director, Comrade Dr. Ibrahim M. Zikirullahi, CHRICED urged the Federal Government to adopt the advice by the IMF to focus more on revenue mobilization, instead of unsustainable borrowing, stressing that it is very clear that even Nigeria’s creditors are getting wary of the prospects of the country getting bogged down by massive and unsustainable debt burden.
Accordingly, CHRICED challenged the Federal Government to take due notice of IMF’s admonition, saying that the goal can be achieved where the government no longer depends heavily on loans, and external borrowing to fund key aspects of the national budget.
CHRICED further said; “It will be good for Nigeria and its economy if the government can begin to exercise some fiscal discipline by cutting down its huge appetite for loans. This is possible if the government vigorously and sincerely drives the anticorruption fight.
“However, taking the IMF’s advice on board would mean doing some reflection to determine the exact value of Nigeria’s current debt stock has added to the lives of citizens, and the health of the national economy”.
It said that preliminary findings from its ongoing analysis of Nigeria’s debt situation shows that current national debt, which is piling up, has not translated to any meaningful gains in the lives of the average Nigerians.
CHRICED said that rather, the country debt profile has created a wide disparity between the rich (in government) and the poor, adding that it is apparent that while Nigeria is currently spending a big part of its budget for servicing loans and other credit facilities, the money borrowed has not been felt in critical sectors such as education, health, infrastructure and human capital development.
In the words of CHRICED; “The fundamental question therefore is: if the impact of all the monies borrowed cannot be felt in the critical sectors of national life, where did the monies go?
“Given the endemic nature of corruption, illicit financial flows in Nigeria’s public finance management, it is apparent that many of the loans have been lost to financial malfeasance. What then is the point of saddling the country with huge loans, which will end up being looted by the greedy political elite that never care if the country bleeds to death?”
CHRICED therefore called on the Federal Government to seriously reflect on the point made by the IMF in order not to suffocate the country with more unsustainable debt.
It noted that with well laid out plans, sincerity of purpose, and with the right people in the proper positions, Nigeria will definitely be able to generate the revenue it needs to fund its development, instead of constantly resorting to the unproductive approach of excessive borrowing.
CHRICED warned that if not jettisoned, the trend would spell doom for the country, adding that as the IMF has indicated, there are many ways and strategies Nigeria can adopt to address its revenue crisis, stressing that plunging the country into more debt, is a bad strategy that has never worked.
