Debt Will Be The Death Of Nigeria’s Economy – Atiku

Ex Vice President, Alhaji Atiku Abubakar has aimed a dig at the President Muhammadu Buhari-led federal government over the slash of the 2020 budget by a mere 0.6 percent from ₦10.594 trillion to ₦10.523 trillion.

Atiku believes that the sum is grossly insufficient and it betrays the fact that we have lost touch with the present realities in the global political economy.

According to him, it is impossible for anyone to justify a reduction in expenditure by just 0.6%, especially now that both our production and the price of oil have been severely affected by the coronavirus pandemic to the point of us having unsold vessels and less income.

He added that the country cannot make up for the loss of expected revenue by taking out more loans and issuing out more bonds because debt will be the death of our economy.

His words, “The sum is grossly insufficient and betrays the fact that we have lost touch with the current realities in the global political economy.

“For the avoidance of doubt, when this budget was presented to the National Assembly on Tuesday, October 8, 2019, it was predicated on a projection that our nation would generate crude oil production of 2.18 million barrels a day, at an expected oil price of $57 per barrel.

“Today, that is no longer the case. Both our production and the price of oil have been severely affected by the coronavirus pandemic, to the extent that we have unsold vessels, and our income has tanked by more than 50%.

“Given that this is the case, how can anyone justify a reduction in expenditure of just 0.6%? We cannot be the only nation bucking the trend?

“Saudi Arabia, a nation with a much stronger production capacity than ours and with a larger global market share, as well as foreign reserves that is 12 times ours, has slashed her budget by almost 30%. Ditto for other oil economies!

“Nigeria cannot make up for the loss of expected revenue by taking out more loans and issuing out more bonds. Debt will be the death of our economy and bonds will put our people in bondage.

“The best way out of this economic quagmire is to reduce our expenditure. And a 0.6% reduction is no reduction. It is only window dressing.”

“My counsel to the federal government of Nigeria is this: put Nigerians first and cut your coat, not according to your size, but according to your cloth.

“Realistically, slash the budget. Every pork barrel has to go. The billions budgeted for the travels and feeding of the President and Vice President has to be reduced. The ₦27 billion budget for the renovation of the National Assembly has to go. The massive budget to run both the Presidency and the legislature has to be downsized. The budget for purchasing luxury cars for the President, his Vice, and other political office holders must be jettisoned. Leave the salaries of civil servants alone, but reduce the salaries of political appointees. Sell eight or nine of the jets in the Presidential Air Fleet.”

“These are the types of sacrifices that we need in a time of crisis. We do not need empty gestures that will lead to empty treasuries. In times of austerity, no nation, not the least a mono-product economy, such as ours, should be living in luxury at a leadership level.”