Halt $800m loan from World Bank – Group advises Buhari
Amid Nigeria’s soaring debt profile, an economic group known as the Center for Fiscal Transparency and Integrity Watch has urged President Muhammadu Buhari to halt the proposed World Bank $800 million loan for post-fuel subsidies removal.
Victor Agi, the group’s Head of Public Relations said this on Wednesday in a statement.
He said the call became necessary following Nigeria’s consistent revenue shortfalls from the oil sector and monetary and fiscal challenges.
It explained that the current pressure on the fiscal side of the economy is due to inefficient public spending, mismanagement of public resources and the lack of accountability which continue to affect investors’ confidence and impact private sector growth.
The centre warned the incoming government against borrowing to finance consumption instead of financing capital projects and the production sector.
“Consequently, the Center recommends the suspension of the $800 million loan, which lacks a proper accountability framework, and may not make any meaningful impact on ordinary citizens but will only further aggravate the public debt stockpile.
“We strongly recommend that the nation’s fiscal handlers, especially the incoming government, ensure that future borrowings are strictly to fund capital projects and the production sector of the economy rather than the current borrowing system for consumption and fund recurrent expenditure”, the statement partly reads.
The Minister of Finance and Budget and National Planning, Mrs Zainab Ahmed, hinted that the federal government plans to borrow $800 million from the World Bank, but the announcement has continued to generate reactions.
