PRP cautions FG, Kaduna governments over excessive loans, debt profile

Worried by Nigeria’s rising debt profile, the Peoples Redemption Party (PRP) has cautioned the Federal and Kaduna State Governments over excessive borrowing, saying the mounting debt stock might further impoverish the nation.

The party said that currently, the country spends about 50 per cent of its revenue on servicing existing debts, pointing out that further borrowing would cripple the economy and send the polity into further social problems.

In a statement signed by its National Publicity Secretary, Alhaji Abdul Gombe, in Kaduna, yesterday, PRP, calling on the National Assembly not to approve the request of the Executive to borrow additional $29.6 billion, which would increase total the national debt to $103billion from current $64 billion.

Besides, the party called on the Senate to also look into Kaduna State Government’s intended borrowing of $350 million or N127billion, saying the state has occupied the ninth position amongst the most indebted states in Nigeria, with a total debt of N162billion, against the Internally Generated Revenue (IGR) of N44billion per annum.The party urged the state government to explain how the previous N164billion debt borrowed was used and what revenues or employments the debt has generated.

It further urged residents of the state to challenge the state government on the reason for the propose borrowing of the additional debt, adding: “How can Kaduna State Government, with an IGR of N44 billion as its only surest annual income, service a debt of N291billion.“The citizens of the state have a right to know the details of these borrowings, such as amount to be borrowed, tenor of borrowing, use to which the funds are to be put and how the borrowings are to be repaid.”