Unchecked Borrowing May Force Nigeria Into Avoidable Bankruptcy – PDP Governors

 Unchecked Borrowing May Force Nigeria Into Avoidable Bankruptcy – PDP Governors
PDP governors

Governors elected on the platform of the Peoples Democratic Party (PDP) have expressed worries over the rate at which the All Progressives Congress (APC) is borrowing money to fund projects in the country.

This formed part of the resolutions reached at the end of the meeting of the PDP Governors’ Forum held in Uyo, the Akwa Ibom State capital.

In the communique, the governors decried that the debt profile of Nigeria with over 80 per cent of normal appropriation spent on debt servicing was rising and becoming uncontrollable.

They stated that all the gains of the PDP government under former President Olusegun Obasanjo when the nation exited its foreign debt obligations had been destroyed.

Also Read: PDP Governors Hold Strategic Meeting In Uyo

“Money should only be borrowed for productive purposes as Nigeria’s current debt of over N36 trillion is becoming clearly unsustainable relative to our earnings and GDP.

“We should not saddle incoming generations with an undue debt burden. The borrowing spree of the APC administration if unchecked will certainly lead Nigeria into avoidable bankruptcy,” a communique issued at the end of the meeting read in part.

They also accused the present administration of borrowing for frivolous items, stressing that such an action was scandalous.

Faulting the organisation structure of the Central Bank of Nigeria, the governors accused the apex bank of operating an independent government within a government.

“A situation where CBN creates money, decides how much of it to spend, on what to spend it on without any form of controls or supervision is patently subversive of our constitutional order.

“It has become not just a leviathan, but also a Father Christmas of sorts, dabbling into every sphere and scope of governmental activity, not just as a lender of last resort, but as a full executing agency of government,”