The Peoples Democratic Party (PDP) has said the N6.08 trillion budget proposal for 2016 by the Federal Government, may throw the country into severe economic recession, like Greece.
The party said with the proposed N1.8trillion borrowing to fund the budget, the country would be borrowing N5 billion per day from first day in 2016 to the last day of the year.

The party’s National Publicity Secretary, Chief Olisa Metuh, stated further that there were no clear cut measures put in place to repay the N1.8trn loan being sought by the government.

Chief Olisa Metuh in his statement said, “Some people may be wondering why we raised the alarm about the budget. The reason is simple. When we analysed the budget, we discovered it is a misshapen attempt at a Keynesian economics of applying deficit spending to stimulate growth even when studies have proven that GDP growth rates decrease by over 50 per cent when debt goes from low or moderate to high. But then we know the borrowing here is to pay huge campaign debt and fund a political war chest”.

“By every standard, this budget is a booby trap against the nation. When you break down the proposed N1.84 trillion borrowing, you discover that it amounts to borrowing N5 billion everyday for the 365 days in 2016. The questions are: for what specific projects are they borrowing N5 billion per day and how do they intend to pay back?”

“The President should explain to Nigerians how they intend to pay back the loan. Is it by continuous borrowing to service the interests, and does he intends to accumulate colossal debt for future generations of Nigerians?”

“The truth is that this administration cannot justify this proposal. There is no known economy in the world where you can justify borrowing N1.84 trillion without specific projects and precise repayment outline’.

“This is worse still in an oil-driven, mono-economy at a time crude oil is selling at $30 dollars per barrel and is speculated to go down to about $20 dollars or even lower in the next one year”.

“The idea can only come when you diversify the economy and boost production capacity in manufacturing and other critical sectors, a direction, which the budget clearly failed to provide.”

http://www.afrieyes.com/2015/12/2016-budget-leading-nigeria-into.html

okay okonjo oweala aka Afrieyes we don hear

Is it wise to go borrowing when you are in a tight and uncertain income stream? The economists would've done their jobs well before Buhari will undertake such a suicidal mission- that's if he has one or cares to listen to one.

But N5b daily borrowing hmmmm!

But at least about 90% nigerians believe in miracle even Fr Mbaka talk am say nigeria go better but s e go take happen say him no know,

politicians do not have to be experts in economics but don't they need to consult experts to compensate for their shortcomings.These men in PDP have Absolutely no clue about basic economics. Their lack of knowledge in governance is even more shocking especially when all the new efforts are as a result of their mismanagement.
The only thing to fear is inflation. Most of the borrowing is local( naira denominated)