Governors  Raise Alarm Over Rising Debt Ahead Of May 29

Two Governors-elect and one  returning  governor have raised the alarm over the rising debt in the country .

Governor Bala Mohammed of Bauchi ; the Plateau gov­ernor-elect, Caleb Mutfwang and Dikko Umar Radda, the Kat­sina State governor-elect expressed worry the country may go under if urgent actions are not taken to reverse the trend.

Rising from the just con­cluded 2023 induction pro­gramme for incoming gover­nors and returning ones, they  said  that Nigeria cannot contin­ue to borrow endlessly.

Governor  Mohammed in his remarks, lamented that the Nigeria’s debt servicing requirement is about 95% of the revenue, warning that the country is going to go under unless something is done

Mohammed wondered why the World Bank did not raise the red flag to the managers of the country’s economy when the debts were getting beyond the threshold.

“Honestly, you heard me ask a question. I wonder what the World Bank is doing. Apart from giving us grants, assis­tance in SFTAS and of course loans they should be able to raise a red flag, they should be able to tell the managers of our economy that we cannot con­tinue to borrow endlessly.

“Our debt servicing re­quirement is about 95% of the revenue. And so the states are affected by this macro-eco­nomic reality. The oil proceeds are not been shared. And we’re here celebrating success, what success? We are going to go un­der unless we do something in­ward to really correct our own perception, our own notions and our own approaches to the management of the economy of the country.

“It is a monolithic economy. And yet even where we are get­ting money, we have taken so much up front, the federation has to be looked at as a struc­ture because states have to have a say in the management of the economy”, stated the Bauchi state governor.

On his part,  Mutfwang, while corroborating Moham­med on the need to reverse the country’s debt situation, stated that there is need for collabora­tion between federal and state governments in order to come up with the right policies to re­verse the situation.

Mutfwang noted that the way to go is to look for ways and means of creating wealth as a nation so that more Nigerians would come out of poverty.

“This is both a national and sub-national issue. We at the sub-national level will be collab­orating with the Federal Gov­ernment, as members of the National Economic Council to come up with the right policies that we’ll be able to reverse our debt situation. And of course, reversing debt is not rocket sci­ence, you have to create wealth, you have to add more money to be able to pay your debts. So we must look at ways and means of creating wealth as a nation.

“For us back on the Plateau. Of course, we’ll be looking at how to be able to boost our economy, diversify our econ­omy, and ensure that there is effectiveness in all the produc­tive sectors of our lives. And at the end of the day, the bottom line, is that our people must come out of poverty and begin to create wealth, so that we can be able to pay more taxes, im­prove our internally generated revenue (IGR). And then from there, we can be able to reduce our debts”, he said.

Radda, said as soon as he is sworn in, there would be a comprehension assessment of the debt profile with a view to restructuring it in order to meet the obligations for the people of the state.


Do you want to share a story with us? Do you want to advertise with us? Do you need publicity for a product, service, or event? Contact us on WhatsApp +2348183319097 Email: platformtimes@gmail.com

Related Articles

Back to top button