Nigerians Facing Harsh Economic Difficulties Despite High Debt Profile – Labour, Others
According to the Nigerian labour it said that Nigerians are facing harsh economic difficulties despite its high debt profile.
Details according to the statement read, “Millions of Nigerians continue to face harsh economic difficulties, lacking access to basic needs, yet the debt profile of the country continues to increase.
“It is even more grievous that the government continues to take loans on behalf of the people without their consent neither their keen understanding of the terms.”
ASCAB said the National Assembly appeared desperate to pull the wool over the face of Nigerians by covering up its tracks regarding the clause in the Chinese loans.
It added, “The opaque nature of the loans is against the principles of the Nigerian constitution,” ASCAB said, citing Section 21(1) of the Debt Management Office Establishment (ETC) Act, 2003 (DMO Act) which states that no external loan shall be approved or obtained by the minister unless its terms and conditions shall have been laid before the National Assembly and approved by its resolution.”
ASCAB stated that information from the Debt Management Office indicated that the total value of loans taken by Nigeria from China as of March 31, 2020, was $3.121bn.
It noted that it was an indication that the Chinese loan was some 3.94 percent of Nigeria’s total public debt of $79.303 as of March 31, 2020 while external sources of funds, loans from China accounted for 11.28 per cent of the external debt profile of $27.67 on the same date.
“The loans were obtained with interest rates of 2.5 per annum, to be paid in 20 years with a moratorium of seven years,” it added.
The coalition said it was important to ask whether Nigeria really needed the jumbo loans when sources of boosting public funds had either yet to be fully explored or completely ignored
The statement added, “The country’s level of poverty continues to increase with the skyrocketing loans obtained by the Federal Government.
“Poverty, extreme hunger, frivolous lifestyles of public office holders continue to fuel violence and public disorder across the country.
“Why the government has responded effectively to the needs of public officials including members of the National Assembly, the economic and social needs of the people remain a mirage,” the coalition said.
Ayooluwa Joshua