Mr Benjamin Kalu, Deputy Speaker of the House of Representatives, has expressed concern about Nigeria’s reliance on debt at 63 years of Independence anniversary.
Speaking at a stakeholders’ dialogue on the implementation of Section 45 of the Fiscal Responsibility Act, on Saturday in Lagos, Kalu said the nation needs to be self-sufficient and independent instead of relying on loans.
Kalu, represented by Mr Nalaraba Abubakar, Chairman, House Committee on Loans and Debt Management, said the previous administration sustained budgets through loans but an approach he considered not sustainable.
He also said that the compliance of the provisions of Section 45 of the FRA remains crucial to the banks and other financial institutions before lending to any government of the federation.
“Lending by banks and financial institutions contrary to the FRA 2007 is unlawful,” the lawmaker said.
Kalu said it was imperative for banks and financial institutions to comply with the provisions outlined in Section 45 of the Fiscal Responsibility Act before they lend to the government.
He noted that it was essential to consider the authorized borrowing limit specified in the appropriation Act and adhere to the extant provisions of Section 45.
However, the deputy speaker expressed his disappointment that state governments were borrowing for consumption rather than focusing on long-term capital expenditure for production purposes.
He said the trend worsens the country’s inflation and inhibits economic growth.
Kalu therefore, advised the state governments to explore their own potentials and enhance local production to increase internally generated revenue instead of relying solely on the Federal Government.
“We encourage states to stop depending on the federal government and boost their local production, thereby increasing internally generated revenue.
“I applaud FRC in its responsibility of keeping up with promoting a transparent and accountable government fiscal management framework for Nigeria,” the deputy speaker sai
