A former presidential candidate, Chief Martin Onovo, has told President Muhammadu Buhari to pursue an option of diversifying the economy rather than resorting to external borrowing.
Onovo, who was the presidential candidate of the National Conscience Party (NCP) in the 2015 presidential election, made the call in an interview with the News Agency of Nigeria (NAN) on Wednesday in Lagos.
He argued that borrowing would plunge Nigeria into a debt crisis and worsen the nation’s woes.
The politician spoke against the backdrop of the recent move by the Federal Government to seek the approval of the National Assembly to borrow $29.9 billion dollars for infrastructural projects.
“This $29.96 billion loan request should be rejected immediately. It should not be re-presented at the National Assembly because it is a sure path to a big national tragedy.
“The implications are enormous because it is contrary to the spirit and the letter of the Nigerian Constitution.
“More so, the constitution is clear about self-reliance and borrowing is not an indication of self-reliance.
“Secondly, Nigeria is in a debt trap already. As we speak, we are heading for a debt crisis if we take that loan. It is very difficult for us to pay our debt.’’
Onovo, citing records of the Debt Management Office, said the total national debt as at 2014 was $54 billion, comprising domestic and foreign debts and that as at June 30, this year, the debt burden stood at $61 billion.
He said that debt-servicing in 2016 gulped $1.48 billion and that $1.64 billion had also been projected for debt-servicing in the 2017 budget.
According to him, Nigeria’s national revenue is being eaten up by debt-servicing.
“In 2013, debt-servicing has grown from N592 billion to N1.48 trillion in 2016, three times the situation three years before.
“If we diversify, we will get results but our problem is that we have been talking about diversification since 1990 without doing so.
“It is not all about talking there must be complementary concrete steps taken.’’
The NCP chieftain also advised the president to remain committed to delivering services that would foster growth.
Asked to comment on the current fears about another fuel price increase, Onovo said that the matter was no longer rumour.
“NNPC has officially increased its pump price by N4.00. We should know that as a people we have a history, each time we have fuel price increase it always starts as rumour.
“We should not dismiss any rumour because it has become a fact in our own national reality.’’
He said that the NCP had issued a statement warning against the last fuel hike by the Federal Government but that the issue was not reported in any medium.
Onovo charged the media to show diligence in reporting matters that affecting the masses.
He argued that increasing in fuel prices had never been economically viable to government, stressing that government usually forgot that inflation always made nonsense of fuel price increases.
“When you do a total cost analysis, increasing fuel price is a loss to Nigeria, if we can see beyond this, the better for us.’’
He recalled that in 1965, under Gen. Yakubu Gowon, the price of fuel was eight kobo per litre and that there had been no benefit to the nation even when the price rose to the current price of N145 per litre.
“Increasing fuel price is the wrong thing to do and that is why we have been getting the worst outcome.
“We have been doing the same thing over and over, applying dumb solution to the same problem,’’ said Onovo.
(NAN)
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