PDP Governors tackle FG over high debt profile, caution against reckless borrowing

June 14, 2021
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The Forum of Peoples Democratic Party (PDP) Governors has condemned what it described as mindless borrowing by the APC-led administration at the centre.

The forum noted that the careless borrowing has plunged the country into uncontrollable debt profile with over 80% of normal appropriation spent on debt servicing.

These was contained in a communique issued at the end of a one-day meeting of the 14 PDP governors in the country held on Monday at the banquet hall Uyo, Akwa Ibom State capital.

CBN explains why Nigeria can’t stop borrowing

The Chairman of the Forum, and Governor of Sokoto State, Alh. Aminu Tambuwal, who read the communique, said money should only be borrowed for productive purposes, noting that borrowing for frivolous items such as funding the Nigerian Television Authority is scandalous.

The forum regretted that Nigeria’s current debt of over N36 Trillion Naira has become unsustainable compared to the nation’s earnings and GDP and warned against subjecting the future generations to undue debt burden.

According to the statement, “the borrowing spree of the APC administration if unchecked, will certainly lead Nigeria into avoidable bankruptcy. Borrowing for frivolous items such as funding the Nigerian Television Authority is scandalous.

“Money should only be borrowed for productive purposes as Nigeria’s current debt of over N36 Trillion Naira is becoming clearly unsustainable relative to our earnings and GDP. We should not saddle incoming generations with undue debt burden.”

The Forum also condemned the operational system of the Central Bank of Nigeria (CBN) saying that the CBN is operating as an independent government within a Government, which is a ‘pervasion of the autonomy of the Bank.’

The communique added, “a situation where CBN creates money, decides how much of it to spend, on what to spend it on without any form of controls or supervision is patently subversive of our constitutional order. It has become not just a LEVIATHAN, but also a father Christmas of sorts, dabbling into every sphere and scope of governmental activity, not just as a lender of last resort, but as a full executing agency of government.

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“The meeting observed that the CBN has become such an octopus that it threatens State governments publicly, without decorum, about sanctions on any attempt to question its MODUS OPERANDI. The CBN should take immediate steps to halt the depreciation of the Naira.”

The Forum also examined the operations of the Nigeria National Petroleum Corporation (NNPC), and raised alarm at the ‘OPAQUE’ manner it carries out its operations. It decried the recent NNPCs decision not to make its statutory contributions to the Federation Account, thereby starving the States and Local Governments and indeed Nigerians of funds needed for employment, development and general wellbeing.

The meeting emphasised that under the Constitution, the NNPC is duty bound to make proceeds of sale or business of Petroleum available to the Federation Account which belongs to the three tiers of government, excluding reasonable and verified and verifiable cost of operations.

Other points raised in the communique included, granting financial autonomy to both the legislature and the judiciary; involvement of States in mining and geophysical activities in the State, tackling insecurity in the country, review of twitter suspension for national interest

Others included the decentralisation of Police and a legal framework to back State policing.

The governors in attendance were: Rt. Hon. Aminu Waziri Tambuwal, CFR – Sokoto State, Okezie Ikpeazu-Abia State- Vice Chairman,Gov. Udom Emmanuel – Akwa Ibom State, Gov. Sen. Douye Diri- Bayelsa State, Gov. Samuel Ortom-Benue State, Gov.Dr. Ifeanyi Okowa- Delta State, Gov. Ifeanyi Ugwuanyi Enugu State, Gov. Nyesom Wike- Rivers State, Gov. Engr. Oluseyi Abiodun Makinde- Oyo State, Gov. Ahmadu Umaru Fintiri, Adamawa State, Gov. Godwin Obaseki- Edo State, Gov. Bala Mohammed-Bauchi State, Gov. Arc Darius Ishaku Taraba State, Deputy Gov. Mahdi Mohd -Zamfara State-Deputy Governor

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