₦airaland Forum

The Speaker of the House of Representatives, Abbas Tajudeen, has declared that the Green Chamber is firmly behind President Bola Ahmed Tinubu’s borrowing strategy, describing it as an indispensable tool for Nigeria’s economic growth and poverty reduction.

Speaking in Abuja on Monday at the 8th Annual African Network of Parliamentary Budget Offices (AN-PBO) Conference, Abbas dismissed reports suggesting that the House opposed Tinubu’s borrowing plans, calling them “mischievous and misleading.”

Recently, a speech delivered by the House Leader at the West African Parliamentary Conference (WAPC) was erroneously and mischievously reported out of context, creating the false impression that the House of Representatives does not support the borrowing strategy of President Bola Ahmed Tinubu’s administration. We wish to state clearly that this interpretation is both inaccurate and misleading.


“The 10th House and indeed the National Assembly have consistently affirmed that, in the face of pressing developmental needs, strategic and responsible borrowing is an essential fiscal tool. Like every modern economy, Nigeria must sometimes leverage credit to finance critical infrastructure, stimulate growth, and protect vulnerable populations. What is important and what the President has assured is that all borrowing remains targeted, transparent, and sustainable, consistent with Nigeria’s Medium-Term Debt Strategy and guided by global best practices,” he said.

The Speaker stressed that the 10th House, and indeed the National Assembly, fully recognises the need for borrowing to fund critical infrastructure, stimulate growth, and protect vulnerable populations.

“Under President Tinubu’s leadership, borrowed funds are being channelled towards transformative projects that will expand revenue-generating capacity, such as power, transport, and agriculture, rather than for consumption. The House stands firmly behind the President’s vision of using judicious borrowing as a catalyst for growth and poverty reduction, while simultaneously strengthening oversight mechanisms.

“In the face of pressing developmental needs, strategic and responsible borrowing is an essential fiscal tool. Like every modern economy, Nigeria must sometimes leverage credit to finance critical infrastructure, stimulate growth, and protect vulnerable populations,” Abbas stated.

He assured Nigerians that President Tinubu’s borrowing is guided by prudence and global best practices, adding that the funds are being targeted at transformative projects.

The Speaker also highlighted the establishment of the National Assembly Budget and Research Office (NABRO) as a major reform to provide independent analysis on borrowing, debt sustainability, and fiscal policy.

He maintained that while borrowing was necessary, plugging leakages through corruption and illicit financial flows was equally critical. According to him, Nigeria loses about $18 billion annually to financial crimes, roughly 3.8% of GDP.

Abbas stressed that responsible borrowing, combined with strict oversight and anti-corruption reforms, would safeguard Nigeria’s economic future.

HeyMeNot:
It's time to start asking questions. The government said its Ko longer paying subsidy.
If its no longer paying subsidy, what sectors are the funds being used for?
Why are we still borrowing? "borrowing strategy" is not a strategy, it's more like pushing yourself into a struggle.

Nigeria shouldn't be a borrowing economy, it's totally wrong and does not speak well.
I mean look at all the Loan Apps scattered all over Nigeria too, it doesn't show the economy is working. it's totally wrong and should be stopped entirely.

nairalanda1:
(DISCLAIMER; I am not here to defend tinubu, and I never have voted for the man. Period.)

This year's budget was based on oil being at 75 dollars per barrel throughout the year at least. INSTEAD ....oil fell below 70 dollars from the end of January...and it got worse

So, we got two options now...borrowing, and or raising taxes.

Note my disclaimer above....tinubu is being forced to borrow because in 2015 he helped buhari into power, and buhari did not diversify the economy, and right now he is following the footsteps of buhari in not diversifying the economy. Tinubu is a failure because there is no plan to make more money for our country.


By the way, if it was not for subsidy removal, things would have been worse. Subsidy removal meant that percentage of government revenue spent on debt service went from 97% to 68% (some say it has dropped to 50%). But that does not translate to an overall increase in revenue, just an increase in available revenue for government to share.

ambale:
You're just going back and forth

The fact that Tinubu knew Buhari never diversified the economy and still praised him to high heavens and still even fraternizing with his family says a lot about you and him

Una no dey everly stable

You took out subsidy on virtually everything, and we met our revenue target in August, but na still mad borrowing we dey talk about

Make it make sense abeg

nairalanda1:
Yeah, the fact that tinubu supported someone like buhari and is following in his footsteps...that's enough reason not to support him

We are saying the same thing, it's just that you misread my post.



You are a good and nice and rich person.



Problem with subsidy was by August 2022, it was eating over 90% of our revenue. That means keeping it would have meant eventually government won't have been able to pay salaries, and meet its obligations (and those corrupt politicans won't be able to loot, lol)...and eventually we would have run out of money and been in severe debt.

Like I always say, subsidy should have gone since 1993. 2012 was the last chance to remove it without pains, but you guys said no.

nairalanda1:
(DISCLAIMER; I am not here to defend tinubu, and I never have voted for the man. Period.)

This year's budget was based on oil being at 75 dollars per barrel throughout the year at least. INSTEAD ....oil fell below 70 dollars from the end of January...and it got worse

So, we got two options now...borrowing, and or raising taxes.

Note my disclaimer above....tinubu is being forced to borrow because in 2015 he helped buhari into power, and buhari did not diversify the economy, and right now he is following the footsteps of buhari in not diversifying the economy. Tinubu is a failure because there is no plan to make more money for our country.


By the way, if it was not for subsidy removal, things would have been worse. Subsidy removal meant that percentage of government revenue spent on debt service went from 97% to 68% (some say it has dropped to 50%). But that does not translate to an overall increase in revenue, just an increase in available revenue for government to share.

ogolemati:
how else do we fill the newly manufactured bullion vans . A very local man telling us what the government he support does on empty stomach

nairalanda1:
Okay, let's keep lying.

Racoon:
Does a rubber-stamped crooked and corrupt stooges have any conscience of their own before? Continue if borrowing is a good way of life. Nigeria will witness all the I'll your wicked decisions lead it into.