NewStats: 3,262,650 , 8,177,793 topics. Date: Tuesday, 03 June 2025 at 07:46 AM 5wv4f

BRUSHING aside all calls for caution, the President, Major General Muhammadu Buhari (retd.), is seeking the approval of the National Assembly for yet another N819.54 billion domestic loan. Ostensibly, the supplementary budget he presented to justify the request is anchored on fixing the infrastructure destroyed by floods across the country.

Buhari has taken too many loans; with only five months left for him to relinquish power, lawmakers should stop rubber-stamping his requests and plunging the country further into the debt trap.

In the letter attached to the supplementary budget read to senators by the President of the Senate, Ahmad Lawan, Buhari said it is meant for the capital expenditure component of the 2022 budget with an attendant increase of deficit to N8.17 trillion, and deficit-to-GDP ratio of 4.43 per cent.

Should the NASS accede to this request, Nigeria’s domestic debt will rise to over N22 trillion.The new borrowing will increase the Federal Government’s domestic borrowing in 2022 to N3.33 trillion. Addicted to debt, the size and frequency of Buhari’s borrowing is unprecedented in the country’s history.

On his watch, total external debt rose from $10.32 billion in June 2015 to $40.06 billion by June 2022, an increase of $29.74 billion or 288.17 per cent. The Senate should act responsibly by subjecting this new request to very rigorous scrutiny. Unless it finds it crucial to national survival, it should be rejected.

Data from the Debt Management Office showed that the government’s domestic debt stock was N19.24 trillion by December 2021. By September 2022, it had risen to N21.55 trillion, an increase of 2.31 trillion in just nine months.

On his watch, total external debt rose from $10.32 billion in June 2015 to $40.06 billion by June 2022, an increase of $29.74 billion or 288.17 per cent. The Senate should act responsibly by subjecting this new request to very rigorous scrutiny. Unless it finds it crucial to national survival, it should be rejected.

Data from the Debt Management Office showed that the government’s domestic debt stock was N19.24 trillion by December 2021. By September 2022, it had risen to N21.55 trillion, an increase of 2.31 trillion in just nine months.

Nigeria is paying heavily for the inebriation. Interest charges on domestic debts will drain N4.5 trillion from the 2023 budget, an increase of 243.51 per cent from the N1.31 trillion proposed for this in 2016. Debt servicing consumed N16.6 trillion in the 16 months period, January 2021 to April 2022.

The Economist Intelligence Unit in July declared Nigeria’s revenue-to-debt service ratio as “the worst in the world” (January to April 2022), when up to 92 per cent of all revenue went into servicing debt. It is expected to reach 116 per cent in 2023, projects the IMF and on current trends, 160 per cent by 2027.

Successive Nigerian governments had a bad track record with debt, but the Buhari regime is by far the worst. Paradoxically, he came into office promising fiscal discipline and a departure from profligacy. Like many of his promises, he has failed to deliver.

Though development economists advise caution, there is a consensus that if carefully applied and a balanced debt-to-GDP ratio is maintained, borrowing can propel an economy by drawing funds to critical infrastructure, technology, human capital and other development projects.

But studies have shown that above a certain threshold and improperly channelled, “high levels of public debt have a negative impact on economic growth,” declared the Cato Institute, a think tank. Nigeria falls into that sorry category. Many cannot see the impact of the huge debt; infrastructure projects are few and excruciatingly slow in delivery.

The infrastructure deficit has been increasing, not decreasing, and requires about $80 billion annually for 10 straight years to fix, estimates Waheed Olagunju, a former acting CEO of the Bank of Industry, higher than the $10 billion annually estimated by the World Bank in 2004/05.

Abandoned and uncompleted projects are every-where. The Lagos-Ibadan Expressway, reconstruction of Port Harcourt-Maiduguri Rail Line, which links the South-East states to a planned new seaport in Bonny, to Northern Nigeria; and many others remain in limbo five months to the end of this regime.

The Second Niger Bridge it opened two weeks ago is not fully completed, with heavy duty trucks barred from using it. The access roads to the Apapa Ports Complex that handle 65 per cent of Nigeria’s maritime trade are a disgrace. This raises questions about the purpose and utility of the loans.

Elsewhere, the parliament maintains strict oversight over the public treasury, ensuring that every kobo is ed for and put to judicious use in the interest of the public.

But the NASS under Lawan & House of Representa-tives Speaker, Femi Gbajabiamila, rubber stamp every loan request by Buhari without rigorously scrutinising the details, purpose, or demanding explanations on how the past loans were utilised. This shameful acquiescence has sentenced the country to debt peonage, robbed Nigerians of the benefits of public revenue, and deepened poverty.

The United States Congress has broad oversight over government’s finances. As the representatives of the people, lawmakers exercise ultimate authority over public funds—not the executive branch. In India, the parliament sets the standards to coordinate and control the budget process; records and measures current financial performance; makes comparisons between actual and budgeted results and takes appropriate corrective action as required. Nigerian lawmakers should similarly be alive to their responsibility of being the gatekeepers of the public treasury.

Countries do borrow to supplement other revenue sources, provide infrastructure, social services, and budget , but it is done wisely. Ghana recently announced that it was restructuring its foreign debts, a clear sign of financial distress and after downgrades by multiple credit ratings agencies. Nigeria must avoid this fate.

Buhari’s reckless debt acquisition amid low public revenue is not sustainable and has serious negative long-term implications. Unproductive national debt lowers national savings and income. It ignites higher interest payments, leading to large tax hikes and spending cuts, and poses a greater risk of a fiscal crisis.

https://punchng.com/national-assembly-stop-approving-buharis-loans/?utm_term=Autofeed&utm_medium=Social&utm_source=Twitter#Echobox=1672187349

General mohammed Buhari Kuku ma sell Nigeria then

-"We will approved the loans" - Ahmed Lawan.

-"Nigeria has not borrowed enough" - Finance Minister

Hope all the urchins, miscreants and high grade mummified zombie of this cursed govt especially the one that called us wailers here are well pleased? Now see where their iberiberism has landed this country after more than 7 years

This current National Assembly under Lawan is the worst since independence.
No wonder urchins claimed it was Saraki that was frustrating Buhari.

But the NASS under Lawan & House of Representa-tives Speaker, Femi Gbajabiamila, rubber stamp every loan request by Buhari without rigorously scrutinising the details, purpose, or demanding explanations on how the past loans were utilised.

This shameful acquiescence has sentenced the country to debt peonage, robbed Nigerians of the benefits of public revenue, and deepened poverty.

A NASS being used to legalized executive impunity, rascality and lawlessness? What does one expects when there heavy involvement of the sitting government in hand-picking the current rubberstamp leadership of the NASS?

They were not selected by Bola Tinubu and called rubberstamp NASS stooges for nothing. This is why emilokan is desperate to continue to loot the carcass of this beleaguered nation till death.

CaptainAyub:
This current National Assembly under Lawan is the worst since independence. No wonder urchins claimed it was Saraki that was frustrating Buhari.

So sad dear. Foolish and gullible citizens believed them back then. Now reality is staring us more clearer in the eyes.Off course the yes,yes rubberstamp NASS under Lawan & Gbaja were getting their cuts of loans corruption.

The Economist Intelligence Unit in July declared Nigeria’s revenue-to-debt service ratio as “the worst in the world” (January to April 2022), when up to 92 per cent of all revenue went into servicing debt. It is expected to reach 116 per cent in 2023, projects the IMF and on current trends, 160 per cent by 2027.

Successive Nigerian governments had a bad track record with debt, but the Buhari regime is by far the worst. Paradoxically, he came into office promising fiscal discipline and a departure from profligacy. Like many of his promises, he has failed to deliver.

Buhari’s reckless debt acquisition amid low public revenue is not sustainable and has serious negative long-term implications. Unproductive national debt lowers national savings and income. It ignites higher interest payments, leading to large tax hikes and spending cuts, and poses a greater risk of a fiscal crisis.

This President of the Senate, who has now become an autocrat in the Red Chamber, declared, “The question of whether we will approve the loan request of the Executive arm of Government? Yes, we will it.”

Few weeks back, this President of the Senate shot down some who requested for copies of the amendments to the Value Added Tax, before the First reading. Senators did not see the document before it jumped the first and second reading.

Fanatical Lawan no longer understands the concept of check and balance in a democracy. He is unconscious that we are running a constitutional government and that check and balance must apply.

The principle of check and balance has been thrown into the garbage can.No wonder Lawan said he would do anything Buhari requests of him in the Senate. For him, the loan request is a done deal. He cares less if this generation, and indeed, generation yet unborn, would be plunged into stifling debt repayment.

 Yes, the legislature does not exist to antagonise the Executive. However, it must effectively and efficiently check the Executive, else, there will be absolutism, as we are now experiencing in Nigeria. https://www.thisdaylive.com/index.php/2019/12/21/lawan-is-just-a-rubber-waiting-to-stamp-anything/

Terrible

No o
They should not stop
Buhari must use Nigeria do collateral for loan b4 he comot

Those bunches of lunatics are mortgaging the future of this country.

That's why they are ganging up to ensure that Peter Obi doesn't become president.

2023 is a battle between us and evil people who have ganged up to make this country a shithole.

Ok

Who will stop Buhari
D both speaker dat said they will always say yes to Buhari request

APC is just too hopeless for NIGERIANS to rely on
& Some people will still vote for Dem

Suffer no dey tire u ni

---

Whoever becomes president after Buhari will have a very big mess to clean up.

D

Baba buhari is doing a good job
Please you bad belle people should not disturb him
You are disputing the economic decisions of a PhD holder in small and large scale economics
He has said it severally that the refusal of lake chad to be recharged is the reason of escalating fuel prices, please be patient while network is restored
Let's put hands with our president so he can take us to places where we no know.

It's peace that I want to see in Nigeria. Let's have peace.

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National assembly not to stamp Buhari's loans... Lol, Punch must be joking.

The guys are ready to stamp a #567billion loan three weeks to the forthcoming election for the prosecution of the election

Buhari don scatter naija economy patapata.

Without a Peter Obi victory, the country is gone.

How long would this issue of loan stop

we don hear

It's cos they too benefit from the loan. Awon ole

HomeTutorsPro:
Whoever becomes president after Buhari will have a very big mess to clean up.

Who tell you say na mess all of dis candidates wan clean up. One no even see any mess to begin with. Na why eim get mind tell us say e go continue with the legacy.
Madness!

There is responsible loans and irresponsible loans. What we are doing is irresponsible loans.

Nigeria go better

Buhari will finish Nigeria with loans and return to where he come from

Buhari came and said he wanted to change Nigeria and the lives of Nigerians for the better. but what we are seeing is contrary to what he promise.
This buhari led-government is a disaster to Nigeria and Nigerians at large, he has successfully taken us from top to bottom.

That Lawan is the most useless senate President. Under Saraki watch this can't happen.

CaptainAyub:
This current National Assembly under Lawan is the worst since independence.
No wonder urchins claimed it was Saraki that was frustrating Buhari.