Centre decries Nigeria’s fiscal condition, tells FG to stop borrowing

The Centre for Fiscal Transparency and Integrity Watch (CeFTIW) has expressed concerns over Nigeria’s fiscal condition.

The organisation wants a freeze on borrowing for consumption purposes, demanding loans obtained be channeled to capital projects and the production sector.

A statement on Thursday by Public Relations Officer, Victor Agi reacted to the latest World Bank Macro Poverty Outlook for Nigeria.

It described the nation’s fiscal condition as “a more fragile position than before the late 2021 global oil price boom,” and put the poverty rate at 41.1%.

The report revealed that 96.3 percent the revenue generated in 2022 was used to service debt, worsening the public debt profile.

The CeFTIW called for the suspension of federal government’s move to borrow $800 million to distribute as palliative to cushion the effect of subsidy removal.

Agi noted that adding more to the country’s debt stockpile will continue to frustrate meaningful efforts to grow the economy.

Nigeria’s debt was $103.11 billion or N46.25 trillion as at December 2022 according to figures by the Debt Management Office (DMO).

The figure may hit N77 trillion by the end of the Buhari administration if the Ways and Means Advances from the Central Bank of Nigeria (CBN) and other loans are included.

“The Centre is bothered by the consistent revenue shortfalls. Despite the deregulation of the oil sector, the cost of petrol imports continues to rise with no solution in sight.

“This is amidst promises of revamping refineries to boost local production. The inability to address the lingering cases of oil theft, diversify the economy, and monetary policy somersault has put the country on edge.”

The statement said it was against further borrowing after assessing Social Investment Programmes (SIPs) such as the COVID-19 stimulus package which reportedly gulped N2.3 trillion.

It also listed Tradermoni, Conditional Cash Transfer (CCT), Government Enterprise and Empowerment Programme (GEEP) and school feeding.

The SIPs reportedly cost Nigeria about $ 1 billion annually, according to the Minister of Humanitarian Affairs, Disaster Management and Social Development, Sadiya Farouq.

“The fact that there has been no commensurate impact on the living standards of Nigerians puts the transparency and accountability of the programmes into question.

“Citizens doubt the planned payment of N5,000 to 10,000 households, over a period of six months with the new loan, will be any different from previous interventions,” Agi noted.

The CeFTIW further demanded fiscal prudence in government activities as well as the entrenchment of strong measures to curb corruption and resource wastage.