Senate urges Fed Govt to stop borrowings

• Published date: 13 January 2023
• Publication title: Nigeria - The Nation

Senate President Ahmad Lawan yesterday warned against increased borrowings by the Federal Government to fund development projects.

Lawan, at a brief ceremony to mark his 64th birthday in Abuja, said although borrowings cannot be completely eliminated, the government must do its utmost best to minimise its rising debt profile.

Proferring ideas on how borrowing could be drastically reduced, he advised that the incoming members of the National Assembly must curtail the trend.

The Debt Management Office puts the nation's total debt stock as of the third quarter (Q3) of last year at N44.06 trillion.

This year's national budget of N21.82 trillion comes with an N10.78 trillion deficit. The Federal Government intends to approach the National Assembly for permission to borrow locally and internationally to fund the deficit.

However, Lawan suggested the need for government to make its Ministries, Departments and Agencies (MDAs) generate more revenue and also review 'waivers and concessions already granted to corporate entities.'

He disclosed that the Senate would before its dissolution engage the MDAs on ways to improve their revenue generation duties.

Lawan said: 'Definitely, we need to work hard on revenue generation and collection by the Ministries, Department and Agencies (MDAs) and other government agencies.

'I also believe that this is something that will spill to the next administration because it is not like we can fix it in the next few months.

'For those of my colleagues who will be returning to the National Assembly, this should be a very important matter for the next Assembly to continue to deal with because we just cannot afford to continue borrowing.

'We should minimize it. I know it is not possible to eliminate it completely, but we should minimise it.

'The next Assembly should do that. I don't know how, but definitely, from our experience of today and even before today, we...