Sen Onyewuchi Decries Inclusion Of Foreign Loans In BudgetSenator Francis Ezenwa Onyewuchi
Senator representing Imo East Senatorial District, Francis Ezenwa Onyewuchi has blatantly objected to plans by the Federal Government to include foreign loans in the 2021 budget submitted for review by President Muhammadu Buhari last week.
He made this observation during a recent plenary session at the National Asssembly.
He, first of all, commended President Muhammadu Buhari for submitting the budget testament which would be reviewed by the House of Representatives. He then pointed out a few gray areas which the President had not put into consideration while vetting the 7.8 trillion naira budget including plans by the government to borrow an additional 4.2 trillion naira loan.

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In his words:

‘There is a revenue projection of 7.8 trillion naira, Mr. President has not taken into consideration the macro-economic environment especially external environment’.

I also think Mr. President, that the uncertainty in the global economy has not been taken into consideration in reaching that decision’.

‘Because what is going to happen is that at the end of the day we might resort to taking loans to fund the budget deficit.’

‘And Mr. President, that brings me to the issue of our debt profile.’

‘As at today, Nigeria’s debt stans at 31 trillion naira, and there are also plans by the Government to borrow an additional 4.2 trillion naira in order to fund the budget deficit.’

‘Mr President, I think that thIs issue of resorting to loans in order to meet financial obligations is totally wrong.’

‘For me, there is nothing innherently wrong in taking of loans but my question is, The loans we are taking, what is it used for?’

Those loans, are they going to be used for infrastructural development? Because any loan that is not used for infrastuructual development, that will not stimulate the economy, that will not lead to the development of the Nigerian economy is misnarrated.

He managed to conclude that the country and the Nigerian Government needs to take up equity funding to be used to boost infrastructural development in the country instead of taking foreign loans.

 

AFRICA TODAY NEWS, NEW YORK