Editorial
FG And Fresh Loans
The Federal Government has been offered
fresh foreign loans running into billions
of dollars by the Chinese Government to fund a number of development infrastructure in Nigeria. This is in addition the plan to borrow N900 billion externally and N984 billion internally to fund the 2016 Federal Budget.
According to official sources, China had offered Nigeria a loan worth $6 billion to fund infrastructural projects. The foreign Minister, Mr. Geoffrey Onyeama said “It is a credit that is on the table, as soon as we identify the projects. It won’t need an agreement to be signed. It is just to identify the projects and we access the loan.”
Easy as it sounds, government did not release the terms of the loan as China would not be doing this for nothing. Noting the saying that the debtor is a slave to the creditor, some Nigerians are worried at how many countries we would be playing the salve to and for how long.
Consequently, some Nigerians have called on the Federal Government to stop action on the foreign loans for now. Many think that it is not the right thing to do at this time when the country is reeling under huge debts and serious socio-economic challenges. Especially with an existing foreign and local debts profile of N12 trillion ($65 billion). Taking fresh loan will only make a mess of the economy and mortgage the future of the country.
Already, a Lagos Lawyer, and human rights activist, Mr. Femi Falana (SAN) has threatened to go to court to stop the loan, if the National Assembly fails to do the needful. Mr. Falana said that rather than pursue loans, the Federal Government should do more to recover the over $200 billion allegedly taken out of the country.
The Tide cannot agree less with Mr. Falana that the Government should look inwards and explore other means of raising money for its developmental projects. Indeed, if there will be more transparency and prudence in the management of the country’s wealth, there will be no need to further entangle Nigeria in debt.
Even so, proceeds from the anti-corruption drive of the Buhari administration, especially, the huge figures being released by the Economic and Financial Crime Commission, (EFCC), as money being returned by looters, should be substantial enough to fund aspects of the budget.
Similarly, a number of government agencies, especially, the NNPC, which is reported to have withheld billions of dollars accruing to the Federal Government over the years, should be made to release the money in their kitty. If there is nothing more to the fresh loans, returns from all the agencies should be sufficient.
We believe that with enough political will and absence of sentiments, the anti-corruption drive of government could still throw up more funds that can be put to the best use in Nigeria. The Federal Government must make effective diplomatic follow-ups to recover funds seized in South Africa as well as new finds of recovered Abacha loot.
Nigeria also stands to get so much from the United States of America, Switzerland, United Arab Emirate that have all promised to return looted funds stashed away in their countries by Nigerians. Such funds, if recovered would certainly ease some of the pains in the system. Some have also said that a proper taxation regime can make a difference.
While we think that borrowing in itself is not all together bad, it must not be the first option in raising the economy. It must be absolutely necessary. For now, Nigeria must look inwards, exploit available windows, avoid wastages and leakages that are still evident in the polity.
Clearly, this is no time for fresh loans. The country needs to think like a modern economy in order to make progress. Lest we forget too quickly, the President Obasanjo government did all it could to defray nearly all the debt in his time because of the negative consequences it was having on the economy, including the proper valuation of the Naira and the foreign reserve level for imports.
Those who are supporting more loans because of nothing but political sentiments should note that life continues after four years and nobody throws stones in the market and hopes to go unaffected. The present generation must not continue to mortgage the future of their children.
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