For some time now Nigerians have been inundated with stories emanating from certain quarters, mostly the opposition Peoples Democratic Party (PDP) and some so-called experts about how astronomical the public debt stock of the country had risen.
Factually-speaking, it can be said that as at 2015 Nigeria’s debt stock stood at about $63 Billion, and over the last six years under the administration of President Muhammadu Buhari, it needs to be established if indeed the loans being collected are utilised judiciously and in the interest of the generality of the people.
Many economic experts have also expressed worry about the quantum of the loans and if transparency was observed. Now the difference between the Buhari administration and previous ones is that indeed transparency and accountability are uppermost in the loans being incurred by the federal government.
Also the deployment of the loans to various people-oriented projects across the country goes to demonstrate that the loans are tied to verifiable projects that will impact on the lives of all Nigerians.
Therefore in line with the expectations of NACCIMA to see borrowings that will add value to businesses in the country, it can be said assertively that under the Buhari administration, both local and foreign loans are project-specific. Furthermore the loans are repayable from the revenues generated therefrom, apart from creating job opportunities for our teeming youths.
It must be stated that while much of the loans obtained under the PDP administrations were frittered away to intangible use, the Buhari administration had ab-initio taken a resolute decision to ensure that Nigeria’s infrastructure deficit is closed.
While it was not their original plan to resort to obtaining huge volume of loans but the negative turn of events which included slide in oil prices, Covid19 pandemic compelled the federal government to deliver on its mandate and campaign promises.
It has also been established that due to appropriate deployment of fiscal policies by the Buhari administration, the economy was able to withstand the shocks and uncertainties associated with the global economic meltdown, hence the non-oil sector helped the country in exiting recession.
If we are to juxtapose this scenario with the period when the Peoples Democratic Party was in power where there was a total dependence on oil, perhaps Nigeria would have truly gone bankrupt, but the Buhari administration was able to weather the storm, and currently Nigeria is on a path of imminent recovery economically.
Do we talk about the diversification which has impacted positively on the country’s economy? Definitely the rapid development of roads and rails infrastructure will go a long way to open the corridors through which they pass to booming economic activities which will help create jobs for local communities and generally stimulate the economies of those areas.
We have in mind the Lagos-Ibadan rail line, second Niger Bridge, Ibadan-Kano rail line, Kaduna-Kano rail line, Lagos-Calabar rail line among others.
Even the trans-Africa gas pipeline being constructed by the Buhari administration and for which some elements may accuse the federal government of borrowing; it will stimulate economic activities along the communities where the pipelines will traverse, and ultimately connect Nigeria to other parts of Africa like Algeria, and transport Nigeria’s gas to Europe.
This would unfailingly promote economic activities and improve revenue generation for the country. In other words most of the projects being executed under the present government are self-paying as the loans borrowed to build them will be recouped in record time.
It is also important to state that the much sought foreign direct investments can only be attracted when the investors see that Nigeria has good and serviceable infrastructure which will enhance movement of goods and services, as well as stimulate the economy.
As at 2015 when the Buhari administration came into office, the national debt profile stood at about $64 Billion but by 2016 it dropped to about $61 Billion. As at March 31, 2021 the national debt stock stood at about $87 Billion. Now a simple comparative analysis will show that between 2015 and 2016, the Buhari administration had whittled down the debt to about $61 Billion, registering about $3 billion reduction.
Furthermore, it can be seen that while the PDP administration left a whooping debt stock of about $64 Billion without any verifiable project, the Buhari administration is doing more with less resources bearing in mind that in six years the Buhari administration is responsible for about $25 Billion debt stock and for which the infrastructural projects tied to them are dotting the country’s landscape.
Therefore, a careful analysis of Nigeria’s debt portfolio will show that the Buhari administration has been borrowing for development while preceding administrations frittered the funds borrowed in very wasteful ways; hence the heavy debt burden on the country.
