…….threatens legal action against NASS
By Ubong Sampson
Socio-Economic Rights and Accountability Project (SERAP) has accused the Buhari-led administration of lacking transparency and accountability in spending loans obtained so far in its reign.
Expressing concerns over the country’s growing debt profile in an open letter dated 18 September 2021, and signed by its Deputy Director, Kolawole Oluwadare, the organisation noted the lack of transparency and accountability in the spending of loans that have been obtained, and the perceived unwillingness or inability of the National Assembly to vigorously exercise its constitutional duties to check the apparently indiscriminate borrowing by the government.
SERAP said, “The National Assembly should not allow the government to accumulate unsustainable levels of debt, and use the country’s scarce resources for staggering and crippling debt service payments rather than for improved access of poor and vulnerable Nigerians to basic public services and human rights.
While urging the Ahmad Lawan led Senate and the Femi Gbajabiamila led House or Representatives to reject the request by President Buhari for the National Assembly’s apptoval to enable him effect a fresh loan move of $4 billion and €710 million,
SERAP maintained that if such request must be granted, the federal government should be made to publish details of spending of all loans obtained since May 29, 2015.
SERAP in the letter also expressed fear that if the fresh request is granted, it may take Nigeria’s debt profile to over N35 trillion. The government is also reportedly pushing the maturity of currently-secured loans to between 10 and 30 years. N11.679 trillion is reportedly committed into debt servicing, while only N8.31 trillion was expended on capital/development expenditure between 2015 and 2020.
“The country’s public debt has mushroomed with no end in sight. The growing national debt is clearly not sustainable. There has been no serious attempt by the government to cut the cost of governance. The leadership of the National Assembly ought to stand up for Nigerians by asserting the body’s constitutional powers to ensure limits on national debt and deficits”, the letter read partly.
The group noted that if the National Assembly and its leadership fail to check government borrowing, as well as ensure transparency and accountability in the spending of public loans, it would consider appropriate legal action to compel the National Assembly to discharge its constitutional duties.
“Ensuring transparency and accountability in the spending of loans by the government and cutting the cost of governance would address the onerous debt servicing, and improve the ability of the government to meet the country’s international obligations to use maximum available resources to ensure the enjoyment of basic economic and social rights, such as quality healthcare and education”, the letter further stressed.
