Planned Borrowing To Finance 2016 Budget Worries Experts
NIGERIA’S plans to borrow about N1.84 trillion to finance next year’s budget deficit is generating intense debate among experts.
There is a feeling that Nigeria accumulating debts in geometric proportions while its ability to repay is not growing as fast.
Lead Director at the Centre for Social Justice, Eze Onyekwere, raised some of these concerns in an interview with The Guardian yesterday.
Onyekwere is concerned over the fixing of the crude oil price benchmark at $38 per barrel when the commodity currently sells at 32 per barrel.
He also expressed worry over “the huge deficit in the sum of 2.22 trillion which is over one third of the overall revenue and which will compliment the retained revenue of N3.86 trilion.”
Among other things, he is concerned that the fact that the President believes that market speculators and resistance to change by some stakeholders is directly responsible for fuel scarcity and uncomfortable that the administration cannot make up its mind on the removal of petroleum subsidy.
Executive Director at Citizens Center for Integrated Development and Social Rights (CCIDESOR), Emeka Ononamadu, is concerned that the budget could take Nigeria back to one of the heavily indebted countries in the world.
“Currently over a trillion is earmarked to pay and service existing debt. What this portends is both negative and positive. If this huge debt is not managed properly or managed with the Nigeria factor, it will mortgage the future of Nigerians, particularly the young Nigerians.”
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