Business Nigeria's Future is Being Mortgaged Through Foreign Debts- Kaigama



President of Trade Union Congress, #TUC, Mr. Bobboi Kaigama, in a statement released days ago said the congress is worried by the country’s rising debt profile.

Kaigama said the union is also cautioning the Federal Government to check its resort to foreign loans before the future of Nigeria is once again mortgaged to foreign creditors, says NATIONAL MIRROR.

According to him, Nigeria's external debt profile has risen by about $5bn in less than four years, representing a 100 percent increase, as recently confirmed by the Director-General of the Debt Management Office, #DMO, Dr. Abraham Nwankwo, who put the country’s domestic and foreign debt at $66bn dollars (over N10 trillion), with the external component being $9.38bn.

“This is very unfortunate moreso when the impact of the foreign loans is not being positively felt by the generality of the citizens.

“Nobody should be carried away by the argument that the country’s debt stock is still less than 26 per cent of Gross Domestic Product (GDP), the socalled international standard. The fact of the matter is that the country went through hell when its debt stock was about $35bn. We should therefore, be concerned that we are going back to where we were before,” the congress said.

Kaigama said even though the DMO had explained that part of the loan was injected into the power sector that the labour body is emphasising that there is nothing on ground to show that electricity supply has improved.

“As at May 2014, the Minister of Power, Professor Chinedu Nebo stated that Nigeria is generating 3,800mw for about 170 million population, whereas experts estimate that Lagos State alone needs about 15,000mw,” the union stated.

Kaigama also faulted the claim by the DG of the DMO that part of the loan was also used to finance roads including Abuja International Airport Road that has not been completed for years, saying TUC urged other trade union movement, civil society groups, and other well-meaning Nigerians to rise up and ensure that the Federal Government stops further foreign borrowing forthwith.

#Nigeria #Kaigama #Bobboi


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