Jonathan Plans to Borrow $25 Billion to Finance Medium Term Expenditure Before the End of 2015
Director General of Debt Management Office (DMO) Dr Abraham Nwankwo has told the House of Representatives joint commitees on Finance, Legislative Budget and Research, National Planning and Aid, Loans and Debt Management that President Goodluck Jonathan plans to accumulate a debt profile of over $25 billion for the country between now and 2015 when his tenure would come to an end, thus taking the nation back to the old debt slave yard of the West.
The Director General of the DMO was summoned by the joint committees to shed more light on the 2013-2015 Medium Term Expenditure Framework and Fiscal Strategy (MTEFF) document sent to the National Assembly recently by President Jonathan.
Explaining his position, Dr Nwankwo said the debt profile will be accumulated with more borrowings from international lenders as stipulated in the MTEFF document, the implication of which would the president to hand over the reins of government to another Nigerian leader, a country deep the abyss of foreign debt from where the nation was liberated in 2004 by the administration of former President Olusegun Obasanjo.
According to his breakdown of the country’s foreign and domestic borrowings flowing from 2013 to 2015, the nation’s external debt which presently stands at $9,021.53 billion will jump to $12,165.10 billion in 2013; $14,585 billion in 2014 and $16,765 billion in 2015. This will be in addition to the domestic debt which currently stands at $6,483.81 billion which will rise to $7,125.93 billion in 2013; $7,792.41 billion in 2014 and $8,4441.86 billion in 2015.
The president’s borrowing spirit was however condemned by the Chairman House Committee on Legislative Budget and Research, Opeyemi Bamidele, after listening to the presentation of the DMO’s boss. “We are now aggressively borrowing in such a manner that the private sector is now being stifled as the government is now the only big spender in the economy. The private sector cannot access funds domestically, they cannot create jobs”, the ACN lawmaker from Ekiti had fumed.
The DMO boss however countered and justified the huge borrowings saying ”every country in the world borrows, even the most financially prudent countries like Germany and the US.”
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