Nigeria can’t be surviving on debt at 63 – Deputy Speaker

Benjamin Kalu, the Deputy Speaker of the House of Representatives has expressed concern about Nigeria’s continued reliance on debt for its budget allocations and economic growth.

During a stakeholders’ dialogue held on Saturday in Lagos to discuss the implementation of Section 45 of the Fiscal Responsibility Act, Kalu underscored the need for Nigeria to attain self-sufficiency and independence rather than relying on loans.

Kalu, represented by Mr Nalaraba Abubakar, Chairman of the House Committee on Loans and Debt Management, expressed that previous administrations relied on loans to maintain their budgets, an approach he deemed unsustainable.

“We encourage states to stop depending on the federal government and boost their local production, thereby increasing internally generated revenue.

“I commend FRC in its responsibility of keeping up with promoting a transparent and accountable government fiscal management framework for Nigeria,” the deputy speaker said.

He did, however, express his frustration with the authorities tasked with overseeing the flow of grants into the nation, citing their lack of adequate record-keeping.

“These grants do not just pass through thin air, but by processes, in which the commercial banks are involved.

“It is important for commercial banks to liaise with the government by disclosing the inflow of the grants,” he said.

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Kalu confirmed that the 10th Assembly is ready to introduce legislation aimed at enhancing transparency in the entry of grants into the country.

He also mentioned their intentions to pass a law that would require commercial banks to reveal the origins of their grants, the recipients of these grants, and the entities responsible for safeguarding the funds.

He noted that these measures aim to provide greater oversight and accountability in the management of grants in the country.

The lawmaker said: “We have billions of dollars coming into Nigeria as grants but cannot pinpoint where the grants are going into in the economy.
“So, it’s important that the commercial work together with the government to rebuild the country, because a buoyant economy would also contribute to the activities of the banks too.”