Tina Amanda
An Economist in Rivers state, Dr Sylvanus Amadi has urged government at all levels to reduce its borrowing as it impacts negatively on the nation’s economy and causes microeconomic problems such as inflation.
Dr. Amadi who is an Associate Professor at the Economics Department, Ignatius Ajuru University of Education Port Harcourt, in and interview with our correspondent, maintained that excessive borrowing is never in the best interest of any state or nation, especially when it is not appropriately channeled.
The Professor of Economics said it is not out of place for a nation to borrow, but such funds should be used for the purpose it is meant for, rather than diverting the funds to finance personal projects or run political offices.
“The point is our system in Nigeria is corrupt, such that it has leaking holes where funds are not properly channeled to develop projects that will impact on the lives of the people.
“United Nations bench Mark for borrowing is about forty (40) percent, Nigeria borrowing is about forty point four (40.4) percent which is higher. How are these funds borrowed channeled, are they properly utilized? That is the question.
“Why is this present administration borrowing for everything, past governments have always been involved in deficit financing and each of this borrowing impacts negatively on the Nigerian economy. Government as of last year spent ninety-eight (98) percent revenue to finance debt, that is catastrophe, borrowing is becoming unbearable.
“Nigerian government should stop borrowing, especially this administration that has a year and some months to leave office, they should not go into new debts leaving it for the incoming government. Why borrow when our resources could take care if properly harnessed?
“Our country is rich, the problem is, any government that comes in, milks the treasury and loot, no accountability. I would not be surprised if some state government or federal government will borrow just to finance their forthcoming election ambitions.”
Also, evaluating some policies of the present administration, Dr. Amadi said most of its policies have suffered implementation due to insecurity challenges bedeviling the nation.
He explained that the policy on agriculture which is well designed to boost the sector, food production and the economy, has suffered setback as a result of herdsmen and Boko Haram attack on farmers, which has made farmers desert their farm lands.
He further noted that the policy on finance meant to curb stealing of public funds, through Treasury Single Account (TSA) has equally suffered implementation as government attention has been diverted to the fight of insecurity.
“The policies are good, beautiful and well designed, but the implementation stands far apart and far below expectations. The Agric policy has brought about improvement in local rice production.
“The number one hitch is, government have not summoned up courage to curtail insecurity, quite often the attention of government is diverted from implementing and much resources is being channeled to fight insecurity. Until they take care of insecurity issues, their policies may never be implemented.
“Rather than the continuous boost in food production, most farmers in the country have deserted their farm lands because of insecurity, the government needs to head on combat insecurity. I do not know why there is still banditry, Boko Haram for more than ten years now.
“This is the Nigerian government that was once known to have strong military. ‘m not surprised when people accuses members of President Buhari’s government as being part of the terrorism, otherwise, what stops them from fighting and defeating terrorism?”
