A Culture Of Borrowing

In an attempt to reinvigo
rate the ongoing war against insurgency in the country, President Goodluck Jonathan recently requested the National Assembly to quickly approve a $1 billion external loan to strengthen our security agencies in the battle against insurgents.
The president said the loan would be used to upgrade equipment, training and logistics of the armed forces and other security services to enable them confront the insurgents more forcefully and tactically.
The proposed loan is coming on the heels of the over N988 billion allocated to Defence in the 2014 appropriation to fight the Boko Haram insurgency. Meanwhile the request from the president has been generating ripples in the country. The proposed loan is already eliciting reactions from certain quarters for the government to account for the funds allocated for the assignment.
The argument has been made that what the fight against insurgency requires at this time is not prodigious funds but fresh ideas and strategies, as the huge allocations to Defence since the insurgency began have failed to be properly deployed to contain the problem.
Others have expressed suspicion that the loan could end up being used for oiling political vendetta such as financing the impeachment of opposition governors as well as persecuting political opponents of the regime.
The widespread negative perception of the quest for this loan is symptomatic of the unfortunate loss of faith in the nation’s leaders and the likelihood that they will act in the best interest of the country, especially where huge sums as the loan being sought by the president is involved.
Given the magnitude and ferociousness of the insurgency in the country, however, I have no doubt that the government needs more money to prosecute the war against terrorism. The military and other security agencies need to be adequately funded in order to make headway in this fight.
It is necessary to equip the military properly and attend to the welfare of all security agents in order to achieve better results. We have to stop living in denial and insist that all is well particularly with the efforts made so far in the war.
The president’s quest to re-stock the military for the battle is, nevertheless, a vindication of Governor Kashim Shettima’s earlier declaration that the insurgents were better equipped and motivated than our military. Following the declaration, the Borno State governor was criticized at that time for what some people considered an unpatriotic stance.
The truth is that the military need to be better equiped. The request for this loan is, therefore, a confirmation that a lot more still needs to be done to make our military a stronger fighting force to be relied upon.
The question, then, is not whether the military need more funds to improve their capacity, but how best to source the money. Must we take a loan to fight insurgency? Ordinarily, loans should be taken for self-sustaining projects that can be used to repay them.
But for the failure to block wastages and corruption that have become avenues to siphon our resources, the country should be able to afford the $1 billion that is needed for the fight.
External borrowing with its attendant unfavourable conditions is unhealthy for our country. We must know that the economy is saddled with a high foreign and domestic debt burden. Available statistics show that as at January this year, the nation’s domestic debt stood at N8.67 trillion and external one at N1.37 trillion.
Interest on loans tend to balloon at astronomical rates, especially if repayment schedules are not strictly adhered to. That is why we must be careful not to become entangled in a debt trap again.
A better way to go is to source the funds needed for this campaign locally instead of externally, because of the harsh conditions attached to foreign loans. It will be wise for the government to look for creative ways to raise the funds internally. We don’t need to add to our already bloated foreign debt profile.
The National Assembly has to take a dispassionate look at the president’s request and treat it with the urgency it deserves. This is not the time for partisanship and politicking. National interest and patriotism should guide their decision on this matter. The lawmakers have to ask relevant questions on the possibility of sourcing the needed sum in the country.
If the loan must be obtained, the conditions attached to it have to be thoroughly interrogated to ensure that the country is never short-changed in any way. Also, the media and civil society organizations should insist on transparency and judicious use of the money.

Arnold Alalibo