At a time Nigeria’s lawmakers are planning to buy vehicles worth N160 million, the move by the President Bola Ahmed Tinubu administration to borrow additional $400 million for palliative over subsidy removal has stirred anger in the country.
Labour unions, economists and civil society organisations were livid yesterday over the development, which is coming amidst expected windfall from the removal of subsidy on Premium Motor Spirit .
Tinubu had taken a $700 million loan to expand the AGILE projects to 11 states. The international financial institution earlier in June approved the first loan of $750 million for Nigeria to boost the country’s power sector through the Power Sector Recovery Performance-Based Operation. Another $500 million loan has been taken under the Nigeria for Women Programme Scale Up .
The current development, coupled with his bloated cabinet, high cost of governance and the over N160 million SUVs for Nigeria’s 469 lawmakers are projected to, in no distant time, push Nigeria’s debt beyond N100 trillion. Meanwhile, the country’s crude oil production remains low and the refineries are shut.
“It is a palpable fear that the proceeds may be diverted to consumption at the household level. That may turn out to be money down the drain, thereby compounding the debt burden. The antidote to a likely diversion is, therefore, an organised and controlled disbursement scheme that takes into recognition the defined empowerment project, household by household.
“Buying cars at that humongous sum shows how unsympathetic the government is to the pain the people are subjected to on a daily basis and it’s is quite insensitive. On the whole, this further fuels citizens’ distrust of the government’s intentions,” Nwadishi stated. He said it would be okay if the government borrows for productive ventures, which would lead to greater expectations because it is an investment.
The President and General Secretary of NLC, Joe Ajaero, and Emma Ugboaja, could not be reached, but a senior official of the Congress who spoke on condition of anonymity, stated that there is no justification for any fresh borrowing. Charting the way forward, the source said: “Government has to address the issues on the cost of governance, reduce wastes and create an enabling environment rather than expanding ministries to give room for more ministers and aides.”
“The vulnerable segments of the society deserve palliatives to mitigate the pains of recent reforms, especially the surging inflation. However, the palliative framework must be inclusive and transparent.
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