Civil society organisation, the Socio-Economic Rights and Accountability Project, has said it will sue the Nigerian government over the latter’s plans to accumulate more debts for the nation.
SERAP in a post on its Twitter handle on Tuesday argued that persistent borrowing, which is characteristic of the present administration, is antithetical to the constitutional oath of office.
Nigerian President Muhammadu Buhari
The tweet reads, “We’re suing President Buhari and his administration over yet another plan to borrow N2trillion despite the N33trillion debt burden facing Nigeria.
“Persistent borrowing is antithetical to constitutional oath of office. We’ll see them in court to end the debt crisis.”
BREAKING: Weâre suing President Buhari and his administration over yet another plan to borrow N2 trillion despite the N33 trillion debt burden facing Nigeria.
Persistent borrowing is antithetical to constitutional oath of office.
Weâll see them in court to end the debt crisis.
— SERAP (@SERAPNigeria) December 28, 2021
SaharaReporters earlier today reported that according to the projections in the National Development Plan 2021-2025, the Nigerian government hopes to push its public debt stock to N50.22tn by 2023, with domestic debt at N28.75tn and external debt at N21.47tn.
In the projections, President Muhammadu Buhari plans to accumulate about N12trillion debt in two years from 2021 to 2023.
The Debt Management Office had revealed that Nigeria’s public debt was N38tn as of the end of the third quarter of 2021, with the total debt stock rising by N2.540tn in three months from July to September 2021.
Based on the plan, the government targets a reduction in total public debt by 2025.
A tabular illustration in the document showed that the government targets N39.59tn debt stock for 2021, N46.63tn for 2022, N50.22tn for 2023, N50.53tn for 2024, and N45.96tn by 2025.
The government also disclosed that it needs money to finance the plan of N348.1tn, and the borrowing framework in the plan is 45 per cent each for both foreign and domestic borrowing.
The plan read in part, “The plan will require an investment of about N348.1tn to achieve the plan objectives within the period of 2021-2025. It is estimated that the government capital expenditure during the period will be N49.7tn (14 per cent) while the balance of N298.3tn (86 per cent) will be incurred by the Private Sector. Of the 14 per cent, government contribution, FGN capital expenditure will be N29.6tn (9 per cent) while the sub-national governments’ capita.
“The borrowing framework in the plan is 45 per cent each for both foreign and domestic borrowing while the other financing sources account for 10 per cent. Domestic bonds and concessional external loan financing, amongst others, will account for the borrowing strategies for the plan. Thus, the government will improve on current debt management strategies to ensure sustainability.”
saharareporters, new york